Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Youth rates law would boost teenage unemployment

Tuesday, 21 February, 2005

Youth rates law would boost teenage unemployment

The current unemployment rate of 12 per cent for 15 to 19 year olds is likely to rise if the Bill introduced to Parliament tomorrow becomes law, says David Lowe, Employment Services Manager for the Employers and Manufacturers Association (Northern).

The average unemployment rate for the workforce overall is 3.4 per cent.

"The abolition of youth rates means a lot more teenagers would find work harder to get," Mr Lowe said.

"School leavers already find it hard enough to get started. The option to pay minimum youth rates often gets teenage careers underway.

"The new law would abolish youth rates which apply to 16 and 17 year olds who usually have little or no regular work experience. They often need a lot of supervision.

"Abolishing the youth rates would hurt teenagers more than help them, especially with the present economic outlook, because if an employer has a choice between a school leaver with no work experience, and a more experienced worker, they will choose the worker with more experience every time, unless there is an incentive to do otherwise.

"In an EMA survey on this last year 14 per cent of employers reported they were paying youth rates. Some said they would not hire school leavers at all if youth rates were unavailable, and look for older workers instead."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>