New Zealand sets limits on unemployment benefits, encourages affected individuals to seek employment
Christopher Luxon has taken to social media to deliver a warning to beneficiaries about the government’s plans to implement strict new sanctions to push them to seek employment.
Amidst the release of concerning unemployment data, indicating a four-year high in jobless numbers, New Zealand’s Prime Minister Christopher Luxon emphasized the importance for beneficiaries to actively search for work or risk losing government support.
He stated, “My message to those facing benefit sanctions is clear: Get a resume, attend job interviews, stay in touch with your case manager, and the community will assist you in finding employment. It is your responsibility to seek work and engage in employment, or else your benefits will be sanctioned.”
An additional 29,000 individuals have become unemployed since the new government took office, predominantly due to layoffs in the public sector aimed at funding tax cuts.
Experts noted the lack of job opportunities, with a significant decline in online job listings reported by the Ministry of Business, Innovation and Employment (MBIE) across various industries.
The unemployment rate in New Zealand has risen to 4.8 percent, with 148,000 people now jobless, marking the highest level since December 2020. The nation saw a decrease in overall employment for the first time in 37 quarters, equating to a million fewer work hours this year.
Youth unemployment rates are particularly alarming, with 15-to-19-year-olds facing a 20 percent unemployment rate and 8.4 percent for those aged 20-24. Maori and Pacific populations witness even higher rates of 9.2 percent and 9.9 percent, respectively.
Recent reports suggest that young individuals could remain unemployed for up to 20 years, with the average person being dependent on welfare for approximately 13.6 years. The adverse economic conditions have resulted in reduced job demand and increased underutilization rates.
While the government emphasizes upskilling, the job market demand has declined across all skill levels, affecting both highly skilled and unskilled workers alike.
Despite efforts to address the situation through welfare sanctions, experts predict a further deterioration in the unemployment scenario. The Reserve Bank of New Zealand’s Financial Stability Report highlights the challenges faced by households due to rising unemployment and weakened domestic economic activity.
