Job numbers fall sharply

The effects of the coronavirus pandemic and subsequent restricted trading conditions resulted in job numbers nosediving by a record 37,500 in April, according to Stats NZ.

When seasonally adjusted, total filled positions fell by 1.7 per cent last month when compared to March, which was “flat”. April’s decline is the largest in percentage terms and by number since the filled-jobs series began in 1999.

“With the country in lockdown during most of April, the impact of Covid-19 is now being seen in falling job numbers,” says Sue Chapman, manager of economic statistics. “Non-essential businesses closed during lockdown although some people worked from home.”

Stats NZ calculates filled jobs by averaging weekly jobs paid during the month based on tax data. Filled jobs include those paid by employers signed up to the coronavirus wage-subsidy scheme.

“While a fall in filled jobs does not necessarily mean employment has ceased in all cases, we saw a rise of over 30,000 people claiming jobseeker support benefit in April,” adds Chapman.

By broad industry, filled jobs in primary industries fell by 4.3 per cent or by 4,480 positions. Those in the goods-producing industries dropped by one per cent, or 4,153 jobs, while those across service industries declined by 1.7 per cent and 29,317 positions.

At a lower industry level, actual – that’s to say, not seasonally adjusted – filled jobs tumbled in almost every sector between March and April. The largest declines were in agriculture, forestry and fishing – down 8,488 jobs, accommodation and food services – down by 6,251, and manufacturing – down by 3,797.

Meanwhile, gross earnings paid to employees in April 2020 came in at $11.1 billion. This compares with $10.8b paid in April 2019. Gross earnings often move up and down every month due to payday timings. “These gross earnings include earnings paid by employers subsidised by the wage-subsidy scheme,” says Chapman.