Praneeta Mahajan
Hamilton, August 5, 2024
The coalition government has announced an additional $9.45 million investment to expand community-led employment programmes.
This funding increase will provide job coaching and other essential support to help young people secure a brighter future.
Social Development and Employment Minister Louise Upston said that the expanded funding would increase the number of available places for young job seekers in these programmes from 5400 to 7500.
“Young job seekers in this country are forecast to spend about two decades of their lives on a benefit, so we must do more to give them a better shot at life. Our government’s new approach will see more funding for community organisations with proven track records of supporting young people off welfare,” she said.
Under the new ‘Welfare that Works’ programme, young people will receive a comprehensive needs assessment, a personalised job plan, and tailored support, including job coaching, to help them access education, training, and employment opportunities.
Targeted Funding
The additional funding for 2024-2025 will be allocated as follows: (a) 500 places with a selection of Youth Employment Pathways providers for people aged 18-24 who have been on Jobseeker Support for longer than a year (b) 1600 places with regional providers for people aged 18-24 who have been on Jobseeker Support for any period.
“Local providers know their communities and the barriers their young people face to employment. They are best placed to help them achieve their potential,” Ms Upston said.
The government will monitor how each provider supports young job seekers and identify which methods deliver the best results before contracting additional places. There are also plans to consider bonus payments for providers and young job seekers who remain off benefits for at least 12 months after finding work.
This initiative is complemented by a new over-the-phone employment case management service for 4000 under-25s, to ensure that the young people have a pathway to a better future through meaningful employment.
Comprehensive Plan
The coalition government is also providing extra support for job seekers to ensure that as many Kiwis as possible are in work or preparing for work. Ms Upston explained, “While today’s quarterly data showing a rise in the number of people on Jobseeker benefits has been long forecast, we are not prepared to sit back and let Kiwis get trapped on welfare long-term.”
The government has set an ambitious target to have 50,000 fewer people receiving the Jobseeker Support benefit by 2030.
To achieve this, several new initiatives are being introduced (a) A new over-the-phone employment case management service that will extend support to 4,000 more job seekers under the age of 25 (b) New work seminars for job seekers within two weeks of coming onto Jobseeker Support to help them understand available help, expectations, and next steps to find work (c) New work check-ins after six months to ensure job seekers are taking sufficient steps to be work-ready, applying for jobs, and identifying any additional support needed (d) Continued investment of $1.1 billion in MSD’s frontline employment programmes and financial supports through Budget 2024 (e) Clearer enforcement of benefit sanctions to incentivise job seekers to fulfil their work obligations.
Ms Upston highlighted the importance of focusing on under-25s, who tend to have less work experience and are at greater risk of long-term welfare dependency. “Supporting them now is crucial for enhancing their long-term job prospects,” she said.
Public Reactions
The public response to the announcement has been mixed.
Jessica Turner, a community worker, expressed her support, “This is a fantastic initiative. Providing young people with the right support and opportunities is crucial for their development and for reducing long-term dependency on benefits.”
Conversely, Mark Stevens, a taxpayer, voiced his concerns, “While helping young people is important, I worry about the effectiveness of these programmes. We need to ensure that this money is being spent wisely and actually leads to sustainable employment, not just temporary fixes.”
This investment marks a step forward in addressing youth unemployment and underscores the government’s dedication to supporting the next generation in achieving their full potential.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
