The Pacific community in New Zealand is facing severe economic hardships due to the wave of job cuts, business closures, and rising unemployment that has swept the country since the National government took office in 2024. With the public sector undergoing significant restructuring, and vulnerable industries like manufacturing and retail under pressure, Pacific workers and families are disproportionately bearing the brunt of these changes.
Job Losses in Key Sectors
The government’s decision to cut over 6,000 public sector jobs has had a direct impact on many Pacific workers. Pacific peoples are heavily represented in sectors like health care, education, and social services, all of which have been affected by the government’s cost-cutting measures. These job losses have not only reduced household incomes but have also created a sense of instability within the community.
In addition to public sector layoffs, many businesses, particularly in the manufacturing sector, have either closed or downsized. For example, the closure of Oji Fibre Solutions and the Winstone Pulp Mill has led to hundreds of job losses. These industries employ a significant number of Pacific workers, particularly in lower-wage, labour-intensive roles, meaning the effects of these closures are felt deeply in Pacific communities.
Rising Unemployment and Increased Reliance on Benefits
The rise in unemployment has been especially challenging for the Pacific community, which already faces higher-than-average unemployment rates. Thousands of people from Pacific backgrounds have been forced to sign up for unemployment benefits as they struggle to find new work. With the economy in a fragile state, the competition for jobs has intensified, making it even harder for displaced Pacific workers to re-enter the workforce.
The knock-on effects of unemployment are being felt within Pacific households, which are often larger and more reliant on a single income earner. The loss of even one job can have a devastating impact on an entire extended family, leading to financial strain, food insecurity, and mental health challenges. Pacific families are also more likely to face barriers when trying to access support services, adding another layer of difficulty in navigating this crisis.
Business Closures Affecting Pacific Entrepreneurs
Many Pacific-owned businesses, particularly in retail, hospitality, and small-scale enterprises, have been forced to close due to rising costs and declining consumer spending. These closures represent not just the loss of income but also the erosion of entrepreneurial ventures that are vital to the Pacific community’s economic empowerment.
High operational costs, driven by inflation and rising energy prices, have made it difficult for small businesses to survive. Pacific entrepreneurs are finding it hard to sustain their businesses, with limited access to financial relief or support. For many, closing down their businesses is not just an economic loss but also a personal blow, as small business ownership has historically been a pathway for Pacific peoples to build wealth and uplift their communities.
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