Job Seeker support is pulled for many youth
Whilst I fully agree with the government that going on a benefit straight after school or training is not ideal, denying them a benefit will cause harm. Struggling parents will be seriously impacted, and young people could spiral into learned helplessness. We all know how vulnerable our young people are, especially those from less advantaged backgrounds. Career mobility is critical to help families move out of intergenerational poverty and unemployment.
We must do so much more to support young people in their transition into work.
Linking eligibility for support to a parental income threshold of $65,000 or less risks deepening the wealth divide and placing undue pressure on families.
There are proven ways to help youth enter the workforce. For example, apprenticeship schemes and hiring subsidies targeting young people have been used successfully in many countries — including Australia, Austria, Belgium, Czechia, Estonia, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, the Slovak Republic, Slovenia, Spain, and Türkiye. These initiatives aim to raise youth employment rates and improve longer-term labour market outcomes.
Evidence shows hiring subsidies can be highly effective. In Chile, for instance, a youth employment subsidy that began in 2009 supported around 70,000 young workers initially, increasing to about 300,000 by 2015 and maintaining that level through to 2022. Evaluations found that participants’ likelihood of formal employment increased immediately and over time.
Similarly, a 2023 evaluation of Hungary’s 90-day job trial showed positive results: participants spent 13–20 more days in employment over the six months following the programme than those in the control group, earning on average 61% more than the monthly minimum wage. Although the effects lessened after a year, the gains were especially strong for lower-educated participants, suggesting that targeting this group could further enhance equity and reduce programme inefficiencies.
Overall, international evidence clearly shows that well-designed youth employment incentives can make a real difference. New Zealand could benefit from adopting and adapting similar models to ensure all young people have a fair and supported start in working life.
My plea to this government is to please support our youth into work to help them retain their self-esteem and improve employability outcomes.
Kaye Avery