Beneficiaries up in December

Many Rotorua people are out of work especially after the closure of the Tachikawa sawmill last year.

The number of Rotorua residents receiving benefits surged by almost 1500 in the last quarter, new figures show.

The newly-released Ministry of Social Development statistics show 8498 Rotorua residents received benefits for the quarter ending December 31 - 1460 more than during the previous three-month period.

The number of beneficiaries was also up significantly compared to December last year, when 7540 received benefits.

Rotorua Citizens Advice Bureau manager Jane Eynon-Richards said many local people were out of work, especially following the closure of the Tachikawa sawmill last year.

Semi-skilled job seekers and casual workers were the worst off, with work opportunities especially limited in the hospitality and forestry sectors.

"[Semi-skilled and casual workers] are quite vulnerable to changes in the economy. During winter when tourism goes down, casual workers get laid off.

"Rotorua always seems to lag a bit behind . . . we're always one of the last to catch up."

However, Rotorua had been "booming" with visitors over the last few weeks and there was an "air of optimism".

"There's lots of activity and there's talk in Rotorua that things are improving."

Nationally, beneficiary numbers at the end of last year dropped to their lowest level since 2008.

Social Development Minister Paula Bennett released new figures last week showing 17,000 fewer people were on benefits in the December quarter than a year earlier. She attributed the drop to the Government's $538 million welfare system overhaul.

In the year to December, 8000 sole parents were moved off benefits, and 7000 fewer people received the unemployment benefit - which is now called "Jobseeker Support". However, the number of people receiving benefits was up from the September quarter, largely thanks to the typical jump in people claiming the Student Hardship benefit, Bennett said.