Unemployment figures on the rise
As Taranaki reawakens after the Covid-19 lockdown, figures show there are nearly 1200 more unemployed people in the region than one year ago.
And the number of unemployed may not have peaked yet, the region’s economic development agency warned.
Last month, there were 4720 people on the Jobseeker benefit – an increase of 1178 people from April 2019.
Of the increase, 876 people had gone on the benefit since March 20. New Zealand went into level 4 lockdown on March 25.
The 4720 workers receiving an unemployment benefit equates to a Taranaki unemployment rate of 6.3 per cent.
Ministry of Social Development regional commissioner for Taranaki, Whanganui, and King Country, Gloria Campbell, said the figure was considerably higher than previous years.
‘‘Thirty per cent of these people have never been on our books before,’’ she said.
The number of children in benefit-dependant families had also increased.
In a recent Taranaki Chamber of Commerce online video seminar, 130 business owners in attendance were asked if they had, or if they planned to, make staff redundant – 13 per cent said yes.
Campbell said it wasn’t all doom and gloom. They had managed to get 120 people off the benefit and into work this month.
The Ministry’s Taranaki offices had even recruited six new staff, who had predominately come from travel industry backgrounds.
There had been a broad range of people inquiring about getting support but the majority were from hospitality, tourism, and those in seasonal work, Campbell said.
While the Government’s wage subsidy scheme had kept many people connected to their employer, Campbell expected a second wave of benefit applications once the scheme ended.
Yesterday, the Government announced it would pay fulltime workers who lose their jobs due to the coronavirus crisis $490 a week and $250 a week for part-time workers.
‘‘It is a difficult time for many people in our community and if you are struggling there are options available to help.’’
The biggest challenge for Taranaki would be the number of people under 25 who would find it hard to get work in a competitive market, Campbell said.
Venture Taranaki chief executive Justine Gilliland said the unemployment increase was not unexpected and challenges would continue.
‘‘This increase may not yet represent the peak,’’ she said.
‘‘Predictions are that this recession will be equal to, if not worse, than the impacts we saw after the 1987 stock market crash, and certainly worse than the global financial crisis.’’
Gilliland said it was important there were opportunities for people to train, retrain and upskill.
What was different this time compared with the 1987 stock market crash, Gilliland said, was the Government was more likely to intervene to try to create stimulus and retain jobs.