Covid 19: More Asian-New Zealanders receiving wage subsidy support, outweigh other ethnicities
A significantly higher number of Asian-New Zealanders are receiving wage subsidy support, in comparison to Pakeha, Maori and Pacifica ethnicity, a report from the Ministry of Social Development has revealed.
The data in the MSD report as obtained by the Indian Weekender has revealed that 64% of Asian employees were supported by the wage subsidy and 22% in the wage subsidy extension.
Notably, the original wage subsidy covered a period from March 17 to June 9, and the payment covered 12 weeks, while the wage subsidy extension period covered from June 10 to September 1.
The numbers collated for the purpose of the report that had come out in the second half of the month of August, when the wage subsidy extension scheme was still open were lesser and are expected to increase as future applications are submitted and paid.
The numbers of Pakeha, Pacifica and Maori employees supported in the initial wage subsidy scheme were roughly around 59%, 57% and 56 % respectively, lesser than Asian employees.
Similarly, more Asian employees have received support in the next round of wage subsidy extension at 22%, which was again higher than other ethnicities receiving support.
The Wage Subsidy Extension provides support to cover eight weeks and will cover up to October 26.
What more can be inferred about the general wellbeing of Asian employees?
At this time, there is not sufficient data available to make any precise analysis with this information about the general wellbeing of Asian employees, and the Indian-origin employees in the current Covid environment.
Except that, it is likely that a greater number of Asian-origin employees, would have escaped the brunt of job losses and the accompanied poverty.
PROPORTION OF UNIQUE JOBS SUPPORTED BY THE WAGE SUBSIDY (Source: Ministry of Social Development)
Notably, a large number of businesses were so severely impacted by the Covid that they chose not to keep jobs afloat by wage subsidy and rather made the position redundant, thus pushing people in greater adversity.
To provide a cushion to this blow, the government had earlier announced a new class of benefit support for 12 weeks in the form of Covid Income Relief Payment that offered almost double and unconditional payment ($490 & $250 per week for full time and part-time employees).
Clearly, the uptake of Asian employees in this new Covid income relief payment was much low in comparison to Pakehas (43%) or even Maoris (16%).
A University of Auckland academic Associate Professor Louise Humpage told the Indian Weekender that this low uptake of Asian-New Zealanders in the income relief payment, added with higher uptake in receiving wage subsidy and wage subsidy extension does point that they might have been able to escape Covid-19 induced poverty in recent times by remaining in their respective jobs and possibly earning more than those on income relief payment.
Prof Humpage is doing a survey to capture data on the number of people who were now receiving income relief payments and analyse the Covid impacted poverty. (The Indian Weekender is encouraging everyone who has lost their jobs due to Covid to participate in the survey).
Another outlier inference, though unsubstantiated by any data, could be the fact that in coming months, when many wage-subsidy supported jobs are expected to collapse, and the unemployment is set to increase to a whopping level of 15% in January 2021, majority of Asian employees who are currently surviving on wage subsidy supported jobs, could be more exposed to poverty, as they will not have the cushion of government’s newly announced income relief payment.
PROPORTION OF UNIQUE JOBS SUPPORTED BY THE WAGE SUBSIDY EXTENSION (Source: Ministry of Social Development)
Some other key insights
Some other key insights about the report included the fact that construction industry had the highest proportion of supported jobs from the Wage Subsidy (101%), whereas arts and recreation services industry had the highest proportion of supported jobs from the Wage Subsidy Extension (48%).
The accommodation industry had the second-highest proportion of supported jobs from both the Wage Subsidy (93%) and Wage Subsidy Extension (46%).
The figures covered in the report include of unique jobs who are paid a wage, salary or withholding payment by the Inland Revenue Department (IRD) and excludes sole traders as their information will not be fully available until their tax returns are submitted.
The report does not cover the period of two-week resurgence wage subsidy announced mid-August due to change of Alert Levels in Auckland and the rest of New Zealand.
A significantly higher number of Asian-New Zealanders are receiving wage subsidy support, in comparison to Pakeha, Maori and Pacifica ethnicity, a report from the Ministry of Social Development has revealed.
The data in the MSD report as obtained by the Indian Weekender has revealed that 64% of...
A significantly higher number of Asian-New Zealanders are receiving wage subsidy support, in comparison to Pakeha, Maori and Pacifica ethnicity, a report from the Ministry of Social Development has revealed.
The data in the MSD report as obtained by the Indian Weekender has revealed that 64% of Asian employees were supported by the wage subsidy and 22% in the wage subsidy extension.
Notably, the original wage subsidy covered a period from March 17 to June 9, and the payment covered 12 weeks, while the wage subsidy extension period covered from June 10 to September 1.
The numbers collated for the purpose of the report that had come out in the second half of the month of August, when the wage subsidy extension scheme was still open were lesser and are expected to increase as future applications are submitted and paid.
The numbers of Pakeha, Pacifica and Maori employees supported in the initial wage subsidy scheme were roughly around 59%, 57% and 56 % respectively, lesser than Asian employees.
Similarly, more Asian employees have received support in the next round of wage subsidy extension at 22%, which was again higher than other ethnicities receiving support.
The Wage Subsidy Extension provides support to cover eight weeks and will cover up to October 26.
What more can be inferred about the general wellbeing of Asian employees?
At this time, there is not sufficient data available to make any precise analysis with this information about the general wellbeing of Asian employees, and the Indian-origin employees in the current Covid environment.
Except that, it is likely that a greater number of Asian-origin employees, would have escaped the brunt of job losses and the accompanied poverty.
PROPORTION OF UNIQUE JOBS SUPPORTED BY THE WAGE SUBSIDY (Source: Ministry of Social Development)
Notably, a large number of businesses were so severely impacted by the Covid that they chose not to keep jobs afloat by wage subsidy and rather made the position redundant, thus pushing people in greater adversity.
To provide a cushion to this blow, the government had earlier announced a new class of benefit support for 12 weeks in the form of Covid Income Relief Payment that offered almost double and unconditional payment ($490 & $250 per week for full time and part-time employees).
Clearly, the uptake of Asian employees in this new Covid income relief payment was much low in comparison to Pakehas (43%) or even Maoris (16%).
A University of Auckland academic Associate Professor Louise Humpage told the Indian Weekender that this low uptake of Asian-New Zealanders in the income relief payment, added with higher uptake in receiving wage subsidy and wage subsidy extension does point that they might have been able to escape Covid-19 induced poverty in recent times by remaining in their respective jobs and possibly earning more than those on income relief payment.
Prof Humpage is doing a survey to capture data on the number of people who were now receiving income relief payments and analyse the Covid impacted poverty. (The Indian Weekender is encouraging everyone who has lost their jobs due to Covid to participate in the survey).
Another outlier inference, though unsubstantiated by any data, could be the fact that in coming months, when many wage-subsidy supported jobs are expected to collapse, and the unemployment is set to increase to a whopping level of 15% in January 2021, majority of Asian employees who are currently surviving on wage subsidy supported jobs, could be more exposed to poverty, as they will not have the cushion of government’s newly announced income relief payment.
PROPORTION OF UNIQUE JOBS SUPPORTED BY THE WAGE SUBSIDY EXTENSION (Source: Ministry of Social Development)
Some other key insights
Some other key insights about the report included the fact that construction industry had the highest proportion of supported jobs from the Wage Subsidy (101%), whereas arts and recreation services industry had the highest proportion of supported jobs from the Wage Subsidy Extension (48%).
The accommodation industry had the second-highest proportion of supported jobs from both the Wage Subsidy (93%) and Wage Subsidy Extension (46%).
The figures covered in the report include of unique jobs who are paid a wage, salary or withholding payment by the Inland Revenue Department (IRD) and excludes sole traders as their information will not be fully available until their tax returns are submitted.
The report does not cover the period of two-week resurgence wage subsidy announced mid-August due to change of Alert Levels in Auckland and the rest of New Zealand.
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