Simon Oldham of Q Jumpers. Photo / File
The Bay of Plenty job market has come through the latest lockdown relatively unscathed, new figures show.
However, the economic bounce-back could be slower and weaker than last year because of reduced Government spending, a business leader says.
Ministry of Social Development figures show the number of people on Jobseeker benefits grew by 738 in the Bay of Plenty Regional Council area in the first three weeks of lockdown. This took the total number of people to 16,128.
That spike, partly caused by the traditional end of the kiwifruit season, is much lower than last year's lockdown when 1590 signed on for the benefit in the first three weeks.
Recruitment company Q Jumpers co-founder and chief executive Simon Oldham said this lockdown was "very different" to the last, with bosses holding on to staff – through short-term help of the wage subsidy - after finding it difficult to rehire last year.
Only a few companies implemented hiring freezes this time, compared with most doing it in 2020.
In the first lockdown, there were "massive" layoffs and recruitment advertising dropped 88 per cent between March and April.
Between July and August this year, advertising spend was up 20 per cent, but it had slowed in the first eight days of September, Oldham said.
The agency's clients were still struggling to find staff.
He said the spike in unemployment last month could be linked to the kiwifruit pruning season ending in August.
Talent ID recruitment and human resource specialist Holly Opper said the skills shortage alongside people being picky about jobs had seen the job market stagnate.
While plenty of jobs were available, many needed specific skills or experience, she said.
In terms of listings, she had only seen one job pulled due to the lockdown with "plenty" of other roles coming up over the past two weeks which had not slowed.
Opper said some industries were more affected than others, and people might need to diversify.
"They need to understand that many skills are transferable and they need to value their experiences. Having the right attitude goes a long way too."
Priority One chief executive Nigel Tutt said the increase in jobseekers was "quite small".
He said there was low unemployment coming into this lockdown and expected people to be picked up by new employers quickly.
Job ads are at a "historically high level" despite a drop over the past two weeks which he also expected would bounce back.
Tauranga Chamber of Commerce chief executive Matt Cowley cautioned that businesses that had not replenished their cash reserves, or had high debt, would have had to let staff go.
Despite the majority of businesses being able to partially operate in lockdown, many would have struggled with no cash flow.
"The staff wage subsidy only partially covers workers' wages, especially as a third of it has to be paid back to Government in payroll tax."
The industries that suffered the most were construction, retail, eateries, and service businesses such as beauticians, barbers, massage therapists, and tattoo artists.
He said the Bay's economy would bounce back but not as strongly or quickly as last year, with the Government's spending during this lockdown "far less" than in 2020.
Tauranga Budget Advisory Services manager Shirley McCombe said lockdowns could have a significant impact.
"My worry is that during the first lockdown, people used savings, borrowed from family, maxed-out credit cards," she said.
"Many are still trying to get back on top from the first lockdown."
She said the impact of being on a benefit was different for everyone.
"It can be overwhelming and we encourage people to take control of the things they have control over."
Rotorua Chamber of Commerce chief executive Bryce Heard said while some sectors were doing well, others were suffering, especially with the loss of international tourism.
He said the overall statistics did not reflect the many tourism-based businesses struggling to survive, and those that have already shut.
"They cannot keep 'bouncing back' from repetitive lockdowns."
Heard said he heard anecdotally that many jobs centred on international tourism had not come back after last year's lockdown, with Māori tourism one of many examples that were "dead in the water" since March last year.
Heard was unsure what happened to those who lost their tourism jobs last year.
Travel, events, professional training, tourism, accommodation, hospitality and some parts of retail were hurting the most, he said.
He said some operators tried to pivot towards a domestic market.
Ministry of Social Development regional commissioner Mike Bryant said jobseeker numbers rise every August, mainly due to the end of the picking and packing kiwifruit season.
He said 921 people left the benefit to work in the Bay of Plenty in August, and more than 11,000 in the past financial year.
During the lockdown, a team of work brokers worked with different sectors to see what the demand was post-lockdown, which included 14,500 jobs needed in horticulture between October and November.
The ministry was also working with different iwi organisations helping whānau with employment, including pre-employment support for Department of Conservation-funded jobs.
Before lockdown, Bryant said the ministry was working with the hospitality and accommodation sector in Rotorua and Taupō to develop programmes for Kiwis to take up jobs in these sectors.
A Ministry of Business, Innovation and Employment spokeswoman said the labour market was in a relatively strong position going into lockdown, with unemployment numbers in June below pre-Covid levels.
MBIE expected the labour market to recovery quickly, she said.
She said the ministry had anecdotal reports there is, or will be, growing demand for workers in horticulture, forestry, retail, and hospitality in the region.
"While there is some job growth, part-time and self-employment are increasing, along with an increase in people seeking more work."
A range of subsidies, schemes and payments were available to protect workers and employers from the economic impact of Covid 19.
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