Jobseeker numbers jumped by nearly 600 in the first fortnight of lockdown. Photo / File
The Bay of Plenty job market has come through the latest lockdown relatively unscathed, new figures show.
However, a Rotorua business leader says the figures do not reflect the many tourism-based businesses struggling to survive, and those that have already shut, 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 to 16,272.
That spike, mainly attributed to the traditional end of the kiwifruit season, was much lower than during last year's lockdown when 1590 signed on for the benefit in the first three weeks.
There are currently 16,272 people on the jobseeker benefit, an increase 738 in the tthree weeks since lockdown began, according to the Ministry of Social Development's latest figures.
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.
Primary industries like dairy, meat, forestry, kiwifruit, and wine was the strength in New Zealand economy, but he said the high international demand wouldn't last forever.
Travel, events, professional training, tourism, accommodation, hospitality and some parts of retail were hurting the most, he said.
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," he said.
Rotorua Economic Development chief executive Andrew Wilson said the spike in jobseekers was "all too familiar" and seen across the country when businesses were restricted.
He said the region was lucky this lockdown had a smaller hit on employment numbers than last year.
He said the focus on creating jobs in a range of industries, including those less affected by lockdowns, was "hugely" beneficial and needed to continue.
Talent ID recruitment and human resource specialist Holly Opper said a skills shortage along with people being picky about jobs or salaries had seen the 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.
The agency was also on the hunt for new skilled candidates and she noted lower-level positions would become available as people move to higher-skilled positions.
She said some industries were more affected than others, and people may need to diversify themselves.
"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."
Q Jumpers co-founder and chief executive Simon Oldham said the spike in unemployment could be linked to the kiwifruit pruning season ending in August.
This lockdown was "very different" to the last with employers holding on to staff — through short-term help from the wage subsidy — after finding it difficult to rehire last year.
Only a few companies implemented hiring freezes this time compared to 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, however, it had slowed in the first eight days of September, Oldham said.
The agency's clients were still struggling to find staff.
Job numbers remained high but people still struggled to provide food — a key issue in the latest lockdown.
Rotorua Budget Advisory Services manager Pakanui Tuhura said people who become unemployed went through a grieving process and getting them to act as early as possible is difficult when they're in denial.
Getting them to be fully engaged in their recovery is "typically our biggest struggle" and included getting them to quickly apply for unemployment relief, encourage them to start job hunting, and help prioritise and organise debts.
"We can get back to higher employment rates but in some areas of the economy the work that people take up in the future may not be the work that they had pre-Covid."
Strength and support for businesses was a "vital" part of the unemployment equation and creating new industries – like electric car manufacture – would grow the job market.
Tauranga Chamber of Commerce chief executive Matt Cowley said businesses that hadn't replenished cash reserves, or had high debt, would have had to let staff go.
Despite the majority of businesses being able to at least 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."
He said the Bay's economy would bounce back but not as strong or quick as last year with the Government's spending during this lockdown "far less" than in 2020.
With Auckland factories still under heavy Level 4 restrictions, supply chains will be impacted, especially for the construction industry.
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 last financial year.
There are jobs, he said, and the ministry was working with employers to make it more accessible to beneficiaries.
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.
He said the ministry contracts services and programmes to support people back into employment.
It was also working with different iwi organisations helping whanau 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 Taupo 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."
The wage subsidy, leave support, and short-term bbsence payment were schemes introduced by the Government to protect employers and workers from the impact of Covid.
The Resurgence Support Payment, Small Business Cashflow Loan and Business Debt Hibernation help with other business costs impact by Covid.
MBIE's All-of-Government Employment Strategy and Regional Skills Leadership Group are labour market initiatives that improve chances of employment for Kiwis, she said.
While job numbers were still high, people still struggled to get by with providing food a key issue in the latest lockdown.
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