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By Brenda harwood
The number of New Zealanders accessing benefits during the September 2020 quarter shows a marked increase from last year, but Dunedin and the southern region appear to be reversing the trend, at least for the time being.
The snapshot of the Ministry of Social Development benefits data sheets for the September 2020 quarter reveals a 23 percent increase in the number of kiwis accessing benefits.
This brings the share of the country’s working-age population receiving benefits to 11.8 percent, although the southern region is 5 percent more positive.
In the city of Dunedin, 9052 people received support.
Dunedin-based Ministry of Social Development’s Southern Regional Labor Market Director Emma Hamilton said the numbers were partly seasonal, with freezing jobs and horticulture sectors poised to pick up.
“We’ve also had people come back from abroad because of Covid-19, and it might take a while for them to find something when it comes to work,” Hamilton said.
“We have also seen some layoffs [due to Covid-19]but not as many as expected, things are definitely better than the original forecast. “
There were pockets of displacement in the southern retail sector, tourism, hospitality, aviation and some manufacturing.
“On the other hand, the national tourism market has taken off and the horticulture and viticulture sector is looking for between 5,000 and 7,000 workers,” said Hamilton.
“The southern region looks very interesting right now.”
It was a pleasure to see that the southern region showed a smaller increase in job search support benefits than the rest of the country.
“I think we are partially protected by our primary industries.”
Platinum Recruitment Relationship Manager Dean Delaney said that working in the recruitment industry, it was clear that job applications were “through the roof” today.
“We are definitely seeing people who have been laid off due to Covid-19, in certain sectors, such as travel and hospitality.
“But now domestic tourism has increased and many cafes are improving again.”
The effects of previous global financial shocks, in the 1980s and 2008, had been slow to filter into New Zealand, and it remained to be seen how the international impact of Covid-19 would affect this country.
“People keep saying they want 2020 to end, but I don’t think we’ve seen the worst,” Delaney said.
“2021 will be a very difficult year.”
Hamilton said that among the major infrastructure works planned for Dunedin, including the rebuilding of Dunedin Hospital, and the city’s large and growing information technology sector, there were “great opportunities” here.
“We have a lot of activity that will drive growth earlier than in other regions.”
“We have companies that are working on a global scale that are based here in Dunedin and that is good for the city,” he said.
This story first appeared in the Otago Daily Times.