Kerre Woodham: Build the economy and the workers will come

New rules come into force for job seekers today, as the government continues efforts to get more young people off a benefit and into work. It's a very worthwhile enterprise. Do not let young people drift onto a benefit because there they will stay for around about 18 years, which is a hell of a life to condemn any young person to.

Hang on a minute though, weren't there sanctions announced in May? You're right, there were. They targeted beneficiaries with money management and community work sanctions if they failed to meet one of their obligations, which involved preparing for or looking for work. 

But wait, there's more. Social Development and Employment Minister Louise Upston has announced that from today, beneficiaries failing an obligation for the first time will face two new rules. They are to undertake and report on a minimum of three job search activities every week for four weeks. 

There is now a requirement to attend and participate in one or more employment-related training courses or programs for a minimum of five hours per week over four weeks. Lot of numbers, lot of stats, but it's basically saying you've got to show that you're looking for work, you've got to show that you're willing to train yourself up to be ready for work. 

The two non-financial sanctions will operate under the traffic light system. If you're at green, you're on track and meeting your obligations. Orange, you move to orange if you don't meet your obligations and you don't have a good reason. And if you don't contact Social Development agencies and get back on track within five working days when you're on orange, you move to red, and once you're at red, your benefit will reduce or stop. 

Upston was at pains to point out that fewer than 2% of beneficiaries are on orange or red light settings. That's a tiny proportion of people who are on benefits, and the overwhelming majority of job seekers are meeting their obligations. 

So that's the info around the new standards, the new expectations of people who are receiving a benefit and looking for work. 

And I have no problem with people being expected to look for work when they are able to, and when they're receiving the dole. My only gripe is that these sanctions would have been really good when our borders were closed and employers were screaming for workers to do anything and everything. 

Remember the number of employers from all over the country that were phoning and saying, "Please, for the love of all that's holy, if you can stagger out the door and to our front gate, we'll offer you a job. We'll offer you all kinds of incentives and bonuses to come and work for us." They were being crippled because they could not find workers. That would have been the time for the sanctions. In '21 and '22, you could have had your choice of jobs. 

But now our unemployment rate is the highest it's been since the Covid shutdowns, 5.2% in three months ending June. Unemployment has been rising due to the weak economy and the lack of business confidence. 

Employers are nervous about expanding their operations, growing their business. The uncertainty over a consistent affordable power supply has seen manufacturers shutter their businesses or scale them down, meaning more people looking for work. 

And some regions of the country have been absolutely savaged. Looking at you, the Central North Island, Tokoroa, Nelson. 

Let me be perfectly clear, to channel the Prime Minister. These sanctions are only going to affect the very worst of the malingerers, and precious few of those. 

People who have been in work want to be in work again. They know the value of earning their keep. But getting back into work right now is not entirely the responsibility of the job seeker, I would argue. 

The government has to give employers sufficient confidence to grow their businesses and to therefore grow their workforce. To paraphrase, build the economy and the workers will come. 

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