More than 200 people continue to use the Civil Defence welfare system each day and thousands have accessed support over the past three months.
Infometrics estimates close to 8000 people will lose their jobs in the Queenstown Lakes area because of the impact of border closures. Most are migrants who cannot return home or access government support.
Social services want the Government to step in and lead them through an emerging humanitarian crisis.
They formed the Household Goods and Services Group to provide basic welfare support for residents in the district in the wake of Covid-19.
In a statement, the group said no one agency was set up to handle the level of demand for basic welfare support and deepening signs of despair.
Central Lakes Family Service social worker Heather Clay said fatigue was growing.
"We are exhausted, having worked near 24/7 for 12 weeks. The people we are assisting are now also exhausted, afraid and losing hope," Ms Clay said.
"They need to be given the means to support themselves so they're less dependent on our services."
Happiness House manager Robyn Francis said the demand had continued to grow.
"We are bracing for further waves of redundancies and hardship as more businesses have to let migrant staff go due to immigration policy.
"While we are happy when Kiwis get jobs, we feel there has not been adequate provision made for migrants who, in many cases, are not able to return to their country of origin. Many are effectively stranded here, with no place to go," she said.
Volunteering Central senior co-ordinator Gillian White said the team of two had worked far beyond their usual hours.
"It is clear that the welfare need and demands on our time will continue to be high for the foreseeable future. Working consistently long hours while juggling work, wellbeing, children, partners and secondary work and volunteer commitments has been a real challenge."
Social services are grappling with the increased demand and trying to balance their usual business.
Instead of the situation improving, Salvation Army Queenstown social support worker Hine Marchand said stress levels had increased.
"People have been in tears as they lose all hope and all ability to support themselves. There's only so much we can do to help. More and more people are finding themselves in this position," Ms Marchand said.
