Home > The Body Politic > 58,000 Youth Unemployed

58,000 Youth Unemployed

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= 2008 =

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In July 2008, John Key made these committments to New Zealand voters;

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National wants all young people to have the opportunity and responsibility to better themselves, no matter what their circumstances, abilities, or track record.

We expect that all those under the age of 18 should be in work, education, or training. To make this possible, National will provide a universal educational entitlement for all 16- and 17-year-olds.

We know there are plenty of 16- and 17-year-olds who have jobs and are learning from them. We also think there are some who might be more motivated and who might achieve more if they could learn in a non-school setting.

This Youth Guarantee will be different from the education entitlements of the past – because we won’t presume that in the 21st century, school will always be the best place for every young adult to be educated.

Our policy will help a large and potentially productive group of young people make a smoother transition from school into further education.

OUR PRINCIPLES

• Building opportunity for all.
• Encouraging ambition.
• Higher standards in education.

NATIONAL’S PLAN

The Youth Guarantee

National will provide a Youth Guarantee – a universal education entitlement for all 16-and 17- year-olds.

This will allow them to access, free of charge, a programme of educational study towards school-level
qualifications.

Most will continue their education at school, but others might be more motivated and might achieve more if given the opportunity to learn in a non-school setting. They might choose to continue their education at, for example, a polytechnic, a wananga, a private training establishment, or through an apprenticeship.

Courses offered under the Youth Guarantee will have to meet strict quality criteria.

This new entitlement will be on top of, not instead of, the education entitlements young people have now.

Sixteen and 17-year-olds who are not working, and who fail to take up this new entitlement, will not be eligible to receive a benefit.

National estimates these new initiatives will cost $65 million a year.

Source

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= 2011 =

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Since then, New Zealand’s youth unemployment has burgeoned from the 25,000 quoted in John Key’s speech, to over double that:  58,000 young New Zealanders.

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Full Story

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Far from “those under the age of 18 should be in work, education, or training“, National has actually scrapped or severely cut back programmes that assisted  young people  into skills training,

Govt cut $146m from skills training, Goff says

Bennett cutting a benefit that helped her – Labour

Even policies designed to specifically create jobs have been either failures, or undone by other National policies. For example, National promised the following,

” * $5.3 million to encourage developers of cycleway projects to hire 500 young people”

* $2.6 million for extra training places in the defence forces

Source

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Actual results,

Morale slumps as job cuts hit Defence Force

Cycleway jobs fall short

Army shifts $2m contract to China

Since then, National’s policies for unemployed young people consist of, tinkering with youth welfare benefits,

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Full Story

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Amongst National’s  “bold” ideas is,

Anyone aged 16 or 17 on a benefit – other than the invalid benefit – would be also paid in a different way…

… Money for basic living costs like food loaded on to a new payment card that could not be used for things like alcohol or cigarettesSource

Which is kinda bizarre, since it is already illegal for retailers to sell cigarettes and alcohol to 16 and 17 years olds.

Another of National’s  “bold” initiatives is to return to youth rates, which Labour abolished in 2008,

Nats propose starting-out youth wage

Election explainer: New Zealand’s minimum and youth wage rates, what’s happened in the past, and why they are an election issue – interest.co.nz

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To some people, introducing a youth rate to give young school leavers and unemployed a chance to get into a job sounds fair and reasonable.

Unfortunately, were it that simple.

A youth rate is counterproductive on several levels.

  1. There is often little difference in productivity between a 19 or 21 year old. So it’s an issue of fair pay for fair work.
  2. A youth rate simply shifts job opportunities from one age bracket to another. There is no net increase in employment.
  3. A youth rate is another driver toward reducing wages in the country – and we already lag far behind Australia.
  4. Employing young people on youth rates certainly won’t mean cheaper “charge out” rates for services (or products)  – employers would simply make a larger profit from lower-paid workers.

Even John Key admitted last August,

While a youth minimum was a factor, the Government didn’t want the public to believe it was the only factor. “Because I think if it’s the only factor someone’s getting employed on, we’re probably getting off on the wrong track here.” Source

It seems obvious that National has no real plan to address our growing youth unemployment. Their reliance on fiddling with youth unemployment is ad hoc tinkering; their plan for a “bene card” is laughable; and their proposed policy to re-introduce youth rates is basically an admission of surrender.

Instead of creating new jobs, National’s plan will simply shift employment from one age group to a younger, cheaper group. It pits one sector of society against another – an all to common tactic in right-wing politics, that values Individualism above Community.

National’s track record on this problem is abundantly clear,

2008: 25,000 unemployed young people

2011: 58,000 unemployed young people

Plus, on top of that, valuable policies designed to train and upskill young people into jobs have been cancelled or suffered funding cutbacks.

The answer is blindingly obvious. We need more jobs – not lower wages for some unemployed. This is not what John Key promised us  in 2008, when he said,

Why, under Labour, is the gap between our wages, and wages in Australia and other parts of the world, getting bigger and bigger?

We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.” – John Key, “2008: A Fresh Start for New Zealand

By National’s own Standards, they have failed to deliver on their promises.

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Additional

Speech by John Key: 2008: A Fresh Start for New Zealand

Youth rates will not solve youth unemployment

Return of youth wage unlikely – Key

Youth unemployment a growing problem

Nats propose starting-out youth wage

Making young poor won’t help jobless

Editorial: Hiring policy leaves youth vulnerable

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  1. Theodore
    2 November 2011 at 12:51 am

    Bloody unbelievable. Key makes all these promises and the media does nothing to keep track of what he’s done or broken promises. So he gets away from spinning all kinds of bovine excrement and people forget what he’s said. Then three years later the [expletive deleted] does it all again!

    [Watch the language please, Theodore. – FM]

  2. Red
    10 November 2011 at 12:50 pm

    Grrrrr! this makes me so angry! John key should have done something aboiut this by now instead of just handing tax cuts out to the rich. my dad got a good tax cut and he said he’d rather have it spent on kids to get them into jobs! I agree with him and why are we letting kids stay in this situation we should be training them and giving them jobs.

  3. Tom Sawyer
    10 November 2011 at 2:10 pm

    No worries John. At least you guys had enough to spend on those new BMWs eh mate? Nice to know your spending our taxs so wisely.

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