NZCTU strongly opposes the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill. The Bill continues the government’s strategy of squeezing the social welfare system during a very challenging economic time for many households, in which both living costs and unemployment have been rising sharply.
Economic downturns, such as we’ve been experiencing in recent years, are particularly harsh on young workers, as they have fewer skills and less experience and are more likely to work in industries vulnerable to economic cycles. Young people have also experienced significant disruption to their education in recent years, due to the COVID-19 pandemic. This means that more young people are leaving secondary school without basic skills needed to attain employment.
Simply eliminating Jobseeker Support for a sub-set of 18 and 19 year olds will not improve this situation. It will not fix the economic problems that are driving unemployment upwards. It will not provide young people with employable skills. And it will not address the social and psychological barriers to employment that some young workers face, such as mental health issues.
The government needs to take a different approach if it wants to improve work outcomes for young New Zealanders. This involves significantly increasing support to young people who are struggling to find or keep a job, through the provision of education and training programmes, job matching, one-on-one career counselling, and wraparound services to address social and psychological barriers to employment.