Businesses face uncertainty as employment declines

February 6, 2025 10:09 pm | Posted in Business News | Share now TwitterFacebook

Compiled by Adorina Massing.

The Vanuatu Chamber of Commerce and Industry (VCCI) and the Department of Labour (DoL) have recently released an Earthquake Survey report, which found that 27 surveyed businesses (16%) are fully operational, 50 (31%) are partially operational, and 53 (31%) are waiting for the town to reopen.

The comprehensive survey report was drafted by Peter Judge, Director of Economics and Research at Pacific Consulting Limited, to extract high-level data from businesses severely affected by the December 17 earthquake.

A total of 169 businesses provided information on staff employment, relocation activities, and recovery phase support needs.

The initial findings indicate that among surveyed businesses, close to 900 employees have lost their jobs, including 45% of reported full-time staff.

The survey recorded a sharp fall in full-time employment, from 1,941 to 1,074, and a slight drop in part-time employment, from 278 to 262. In total, businesses reported 883 fewer jobs than before the earthquake.

The most impacted sectors are food and beverage, with surveyed businesses reporting a 71% drop in employment, followed by retail (48% of jobs lost) and accommodation (30%).

When asked how businesses are currently funding their staff, 60 (47%) said they are using business savings, while 20 (16%) are relying on personal funds. Ten (8%) reported using cross-subsidisation from another business, and seven (5%) are relying on a bank overdraft.

The survey showed that nearly half of businesses—63 (46%)—could only sustain their current situation for less than two months.

In terms of support packages, businesses were asked to rate seven support measures on a scale of 1 to 5, including better communication from the Government, reopening the CBD, business reopening grants, wage subsidies, tax relief/payment deferrals, low-interest loans, and business advisory services.

The highest-rated responses were improved communication and reopening the CBD as safely as possible.