SNAP SURVEY INDICATES NEARLY 900 JOBS LOST AFTER EARTHQUAKE
The Vanuatu Chamber of Commerce and Industry (VCCI) in partnership with the Department of Labour has conducted an initial assessment on severely impacted businesses following the December 2024 Earthquake. A total of 169 businesses provided information on status on staff employment, relocation activities and recovery phase support needs. The full report is available by clicking here.
The initial findings indicate that among surveyed businesses close to 900 employees have lost their jobs, including 45% of the reported full-time employed staff.
The most impacted sectors are food and beverage, with surveyed businesses reporting a fall in employment of 71%, followed by retail (48% of jobs lost) and accommodation (30%).
46% of surveyed businesses were operational to some degree, of which only 35% are fully operational, with the remainder being partially operational. Close to a third (31%) stated that they were waiting until the CBD reopens before reopening.
One of the most important findings was that there were no businesses who said that they have permanently closed because of the earthquake. This extraordinary result is a testament to the strength and ingenuity of the business community, and it is something to celebrate and acknowledge – including internationally with the message that Vanuatu is ready with open arms and big smiles to welcome tourists.
However, at the same time many businesses and individuals are suffering and hurting, and if the economic downturn continues, many businesses have expressed concern about their ability to continue to operate. Businesses were also asked how long they can maintain current employment arrangements, with just under half saying they can only afford wages for another 1-2 months.
The VCCI will continue to work with Government and other partners to ensure as rapid and healthy an economic recovery as possible. Among the options surveyed, improving communication and reopening the CBD as fast as safely possible were the most popular options. The VCCI is also continuing to work with the Government on a possible support package.
This report only focused on severely affected employers, and as such fails to capture many of the other economic impacts of the earthquake. In particular, many micro-vendors, bus drivers and other informal businesses have also been heavily affected by the CBD closure and unable to operate fully.
This snap analysis also does not consider the magnitude and impact of any broader economic slowdown on the full economy, including on other islands. The VCCI will be looking at these bigger questions as part of future pieces of analysis.
