More than 1400 in Hawke's Bay apply for unemployment benefit in a month

A total of 1458 more people applied for unemployment benefits across Napier, Hastings, CHB and Wairoa in April compared to the previous month. Photo / Warren Buckland

More than 1400 people in Hawke's Bay applied for the unemployment benefit in April, as the full effect of the Covid-19 lockdown on the region's workforce becomes clearer.

The East Coast as a whole saw those applying for unemployment benefits increase from 7811 in March to 9782 in April – an increase of 25 per cent - with Napier, Hastings, CHB and Wairoa accounting for 1458.

Tukituki MP Lawrence Yule said it showed the region needed to drop to alert level 2 "as soon as possible".

"March is usually the lowest rate of unemployment in Hawke's Bay due to the peak horticultural harvest," he said.

"To see a 25 per cent increase in people on the jobseeker benefit in just one month when all these orchards were picking and processing fruit as essential services shows the true impact on regional New Zealand."

The East Coast recorded the third-highest percentage increase across all regions in New Zealand, behind Southern (which includes stricken tourism city Queenstown) and Nelson.

In Hastings, those applying for unemployment benefits increased from 2289 in March to 3033 in April – an increase of 744 (33 per cent).

In Napier, 2671 people applied in April – a 26 per cent increase on the 2123 who applied in March.

Napier MP Stuart Nash said under alert level 3, New Zealand and the region was running at about 75 per cent of normal economic activity.

More than 4700 of new jobseeker applications nationally are from people returning from overseas, he said.

"That's likely to represent a big chunk of the increase in Hawke's Bay too."

Nash added: "We know the restrictions have had an impact.

"We are doing everything we can to mitigate this, through our significant investments to support businesses, jobs and incomes, especially here in Hawke's Bay.

"Level 2 has been designed to get as many people back to work as possible and the economy back up and running in the safest possible way."

Napier Mayor Kirsten Wise said although the level of unemployment revealed was "distressing", she had full faith in her council's plans for recovery.

"I was pleased to see so many businesses have thought outside the square during alert level 3, taking advantage of technology and adapting the way they work so they can continue to function in some fashion," she said.

"We're confident in these uncertain times that the recovery plan council and others are working on, supporting local businesses where we can in conjunction with central government initiatives, and other organisations' initiatives, will assist to stimulate the local economy."

Yule said the figures only show the people who have applied for the unemployment benefit and not those who aren't eligible because they're in relationships or are migrant workers.

"The fact that such a large number of people sought the jobseeker support when the wage subsidy was available shows the scale of the new unemployment challenge," he said.

"These aren't just statistics, behind every job loss is a family now struggling to pay the bills and put food on the table.

"The people of Hawke's Bay can be proud that we've flattened the Covid-19 curve, we don't want to flatten the economy too."

In Central Hawke's Bay, those applying for unemployment benefits increased from 288 in March to 378 in April – an increase of 31 per cent.

In Wairoa District, 758 people applied in April – an 11 per cent increase from the 682 who applied in March.

The Queenstown-Lakes District saw the highest percentage increase for a single territorial authority of an astonishing 267 per cent.