Bay of Plenty Times
  • Bay of Plenty Times home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport

Locations

  • Coromandel & Hauraki
  • Katikati
  • Tauranga
  • Mount Maunganui
  • Pāpāmoa
  • Te Puke
  • Whakatāne
  • Rotorua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Thames
  • Tauranga
  • Whakatāne
  • Rotorua

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Bay of Plenty Times

Covid 19 coronavirus: Jobless benefit numbers approaching GFC levels in New Zealand

Isaac Davison
By Isaac Davison
Senior Reporter·NZ Herald·
10 Jul, 2020 06:15 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Focus: A marae setup a drive-thru food bank for those in need during lockdown. Video / Michael Craig

Zoltan Buday found out he was losing his job while he was watching the 6pm news.

The news report in early April confirmed that SkyCity Casino, where he worked as a dealer, was cutting 200 jobs and planning another 700 job losses.

"It was during level 4 lockdown and I was holed up at home," Buday said. "It was gutting."

Buday had worked there for eight years, and now finds himself looking for another hospitality job - one of the sectors worst-hit by the Covid-19 crisis. He has been on a benefit before, but only briefly.

"I just don't know what's around the corner," he told the Herald.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

He has applied for the Covid-19 Income Relief Payment, which is worth $490 a week. That will only cover the rent on his New Lynn flat, and he has two dependent children who he cares for three days a week. He received a redundancy payment, but lost a big chunk of it to tax.

Buday, a Unite Union delegate, had repeatedly urged SkyCity to apply for an extension to the wage subsidy so it could keep staff on. The company this week finally confirmed to staff in the last week that it was applying for the eight-week extension, but he had already been laid off.

Zoltan Buday first discovered he was losing his job at SkyCity Casino when he heard about mass job cuts on the news. Photo / Michael Craig
Zoltan Buday first discovered he was losing his job at SkyCity Casino when he heard about mass job cuts on the news. Photo / Michael Craig

In the next week, the number of people who have gone on to an unemployment benefit during the Covid crisis is likely to surpass Global Financial Crisis levels - around 65,000.

Advertisement
Advertise with NZME.

That unwanted milestone will be reached in fewer than four months. During the GFC, it took 21 months.

"There is a steadily rising second wave of job losses which are filtering through the economy," said Brad Olsen, a senior economist at Infometrics.

This wave of job losses was slower, he said, because of both the cautious optimism in the economy and the significant wage subsidy support still in place.

The rise in jobless support numbers was not surprising.

Discover more

New Zealand|politics

'These are hotels, not prisons': Hamilton escapee evaded police, climbed down fire escape

10 Jul 12:47 AM

"We expected that as the main wage subsidy ended, there would be many businesses who went back to work, but downsized their workforce to meet the softer economic conditions we find ourselves in.

"We also expected that there would be many businesses that didn't meet the 40 per cent revenue decline threshold but were still grappling with a hit to revenues which would see them lay off workers."

Olsen also said the jump in job losses had not been as immediate as initially feared - likely because of the wage subsidy extension.

Treasury predicted that 232,000 people would be on an unemployment benefit by the end of June. In reality, there were 205,278 New Zealanders on one of the two jobless support payments at the beginning of July.

However, with the extended wage subsidy still supporting 372,000 jobs, it is feared that jobless numbers could spike when it ends in September. MSD expects demand for jobless benefits to peak in January.

The rising number of people going on a benefit - in particular middle or higher income earners - has led to more scrutiny of how much beneficiaries are paid.

Advertisement
Advertise with NZME.

Welfare advocates have accused the Government of creating a two-tier welfare system by paying newly jobless $490 through the Covid relief payment while existing beneficiaries received around $250 a week.

Documents released through the Official Information Act last month showed that Social Development Minister Carmel Sepuloni has asked officials for advice on "options around general income adequacy of the income support system".

But that looks unlikely to lead to an immediate rise in core benefit payments.

When asked for further information by the Herald, Sepuloni said: "I have never shied away from the fact that we have more to do in the long term to address income adequacy."

Save
    Share this article

Latest from Bay of Plenty Times

Bay of Plenty Times

'Tragic and unforeseen': Couple's fatal plunge likely caused by medical event – coroner

Premium
Bay of Plenty Times

‘Sugar hit’ of economic activity: Aims Games ready to kick off in the Bay

Bay of Plenty Times

Small eruption observed at White Island


Sponsored

Farm plastic recycling: Getting it right saves cows, cash, and the planet

Advertisement
Advertise with NZME.

Latest from Bay of Plenty Times

'Tragic and unforeseen': Couple's fatal plunge likely caused by medical event – coroner
Bay of Plenty Times

'Tragic and unforeseen': Couple's fatal plunge likely caused by medical event – coroner

Their car went over an embankment into Lake Rotomā, near Rotorua, in the winter of 2020.

28 Aug 07:09 PM
Premium
Premium
‘Sugar hit’ of economic activity: Aims Games ready to kick off in the Bay
Bay of Plenty Times

‘Sugar hit’ of economic activity: Aims Games ready to kick off in the Bay

28 Aug 07:02 PM
Small eruption observed at White Island
Bay of Plenty Times

Small eruption observed at White Island

28 Aug 07:01 PM


Farm plastic recycling: Getting it right saves cows, cash, and the planet
Sponsored

Farm plastic recycling: Getting it right saves cows, cash, and the planet

10 Aug 09:12 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Bay of Plenty Times e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Bay of Plenty Times
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Bay of Plenty Times
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP