The number of people on unemployment benefits in Hawke's Bay has gone up 23 per cent since January.
More than 7000 people in Hawke's Bay received Jobseeker Support benefits in the week New Zealand returned to alert level 1, according to the Ministry of Social Development's latest data.
The Income Support and Wage Subsidy Weekly Update report revealed that a total of 7169 people (6.8 per cent) received the benefits in Hawke's Bay in the week to June 5 – up from 5796 (5.5 per cent) pre-lockdown (January 3, 2020).
The region with the highest percentage increase was Northland, which increased 2.2 percentage points, compared with 1.3 per cent in Hawke's Bay.
Napier Mayor Kirsten Wise said the number of people in Hawke's Bay on Jobseeker Support is "sad but not unexpected".
"I'm optimistic that things will change, and here in Napier we do have a plan focusing on how we can support those who have been hit hardest, including rates and rental relief, and supporting local businesses and employers," she said.
"At this stage we don't know what the full effect will be, so our Recovery Plan has been designed to be flexible and respond where we need to."
Wise added: "I encourage anyone who needs help, to seek help, anyone with innovative ideas to help our community to contact us."
In New Zealand, a total of 190,607 received Jobseeker Support in the same time period, compared with 146,738 at the start of the year, equalling 6.3 per cent of the estimated working-age population.
This is made up of 125,023 receiving Work Ready payments and a further 65,584 of Health Condition and Disability.
A total of 8285 people received the benefits on the East Coast of the North Island prior to lockdown (January 3) out of an estimated 125,510 of people of working age in the region.
Business Hawke's Bay CEO Carolyn Neville said the increasing number of those on unemployment benefis is likely to continue.
"An earlier regional forecast by Infometrics indicated that employment could shrink by 7000 jobs over the coming 12 months, so the rise in Jobseeker Support recipients is expected, and will likely be ongoing for many months," she said.
"It's a very tough time for both employers and employees as difficult decisions are made and although redundancy is about roles, not people, people are deeply affected with a high emotional toll.
"The impact of the end of the first tranche of the wages subsidy is now being felt."
Neville said in Hawke's Bay there was also the additional impact of the end of the seasonal labour period.
"However we anticipate that as the central government funded civil works and infrastructure projects kick in with redeployment opportunities then some job losses will be offset."
Hastings Mayor Sandra Hazlehurst said tourism, retail, hospitality, the arts and accommodation providers are not yet back to their pre-Covid-19 days.
"Central government's investment is helping – building 200 new homes and putting $15m into local roading projects to create 220 jobs," she said.
"Our council's investment is helping – bringing forward $130m of capital work for infrastructure upgrades including our CBD. Council has also invested $150,000 to help market and promote central business districts of Hastings, Havelock North and Flaxmere."