Recent data reveals that Wellington City has experienced a significant loss of jobs, with over 10% of its workforce affected in just a year. This downturn is attributed to various factors, including the economic impact and political decisions such as Health New Zealand cuts.
Economist Shamubeel Eaqub’s analysis shows a staggering decrease of 19,430 jobs in Wellington City compared to the previous year, representing an 11.6% decline. This decline is expected to have a severe impact on the region’s economy.
In contrast, Auckland, despite being a larger area, has also suffered job losses, with over 10,000 positions disappearing during the same period. Eaqub points out that while Wellington City is heavily focused on its CBD, the job losses extend beyond this area to impact a wider region.
Most of the job cuts are likely affecting those who commute into the city for work. Eaqub highlights the discrepancy between the 153,000 jobs in Wellington’s CBD and the 100,000 people in the city with jobs, indicating a significant imbalance.
Although the exact number of job losses directly related to public sector cuts is unclear, it is evident that a proportion of the losses can be attributed to this factor. Health NZ’s recent confirmation of nearly 600 voluntary redundancies adds to the estimated 10,000 public sector job cuts that have already occurred.
