Covid 19 Delta outbreak: Expected rush of unemployment benefit applications from unvaccinated workers

No clear picture has surfaced yet on how the Government will handle an expected rush of unemployment benefit applications. Photo / NZME

No clear picture has surfaced yet on how the Government will handle an expected rush of unemployment benefit applications.

Time has run out for many unvaccinated workers - including those in education, health and disability - with the "no jab, no job" policy officially coming into force yesterday.

Teachers and school staff needed to have had their first vaccine by the end of yesterday if they wished to keep their jobs, and health and disability staff before today.

Ministry of Social Development's employment group manager Hugh Miller said it has been working closely with both sectors to gauge who will likely leave the workforce.

"This work is ongoing, and we expect to have a clearer picture in the coming weeks of how this will impact demand for MSD's income and employment support," he said.

The last official forecast released by the MSD projected the number of New Zealanders to go on the working-age benefit would peak in January at an estimate of 417,000. Those on job seeker support would rise 243,600 over the same time period.

The report said this was mostly because the economy was still expected to be soft while the border controls are in place.

However, this forecast was published on May 20 - before the vaccine mandates were introduced.

The latest figures from the MSD show as of September - 359,496 people aged between 18 and 64 were receiving a main benefit.

Miller said MSD has rapidly responded to increases in demand throughout the pandemic - having already supported people with roles impacted by previous vaccination Public Health Orders - including MIQ staff and border workers.

"We are here to help people, whanau and communities respond to challenges posed by the pandemic - and have a range of existing support that may be available," he said.

In October alone, 9300 people cancelled their benefits due to obtaining work - a 15 per cent increase compared to the previous month.

The MSD's client service delivery director Graham Allpress confirmed any decision made by a client over whether to get the vaccine or not, will not affect payments.

Meanwhile, businesses are continuing to work through what the Government's new traffic light system will mean for them.

Numerous restrictions will be imposed on hospitality outlets if vaccine certificates are not used.

Hospitality businesses will be required to run contactless if in red or orange - or have limitations of up to 100 people if in green.

Aikmans Bar and Eatery general manager Jeremy Stevens said he has spoken to his staff about the process of needing all of its workers and customers to be fully vaccinated.

But he said the Government hasn't released any legislation to allow the business to give staff the four-week notice to get vaccinated.

"I was desperately hoping that was going to be last week, we haven't heard anything yet - and the risk is if this takes another two to three weeks for the legislation to come through, in December we are not going to be able to operate in the way that we need to".

He said December is usually its biggest month of the year - and it is important it is operating under a situation similar to the alert level 1 system.