Life in lockdown: The economic and social effect of lockdown during Alert Level 4 in New Zealand

Abstract

On March 25th 2020 New Zealand completed a 48 hour transition to an Alert Level 4 lockdown, a state which severely restricted people’s movement and their social interactions in an attempt to limit the spread of Covid-19. To examine the effects of lockdown on economic and social wellbeing in New Zealand, the Roy McKenzie Centre for the Study of Families and Children and the Institute for Governance and Policy Studies conducted a survey between Wednesday April 15th and Saturday April 18th. This period was particularly salient for examining wellbeing as it was the third week of lockdown and a time when no official announcement had been made on how long lockdown would continue. Taken together, this report highlights that close to half of all New Zealanders experienced an economic loss during Alert Level 4 lockdown. It confirms that the wellbeing losses among those who experienced job or income loss are also likely to have been substantial. Essential workers reported slightly more stress during this time. Those who remained employed but could not work—a sizeable proportion who were likely being supported by the government wage subsidy programme—reported better wellbeing than other workers during lockdown and much better wellbeing than those who lost their jobs, demonstrating the positive impact of job security despite being unable to work. In terms of family functioning, families as a whole were considerably less stressed by fears that lockdown would strain relationships. Balancing work and family demands under lockdown, however, created time pressure and stress among working parents, in particular working mothers of young children. Overall, these findings can inform policy responses in the labour market that are aimed at both economic and wellbeing recovery, and in the event of potential future lockdowns.