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

 


NZ teens face $10.80 an hour youth wage rate

NZ teens face $10.80 an hour youth wage rate in government jobs boost bid

By Paul McBeth

Oct. 9 (BusinessDesk) - New Zealand teenagers face a lower wage rate than the rest of the workforce for their first six months in a job as the government seeks an antidote to high youth unemployment.

Labour Minister Kate Wilkinson will amend legislation to reintroduce a youth wage rate that's 80 percent of the minimum wage, she said in a statement today. That equates to $10.80 an hour, or $432 before tax for a 40-hour week. From April next year, the 'Starting Out Wage' will apply to 16- and 17-year-olds in the first six months of a job, to 18- and 19-year-olds entering the workforce after spending more than six months on a benefit, or 16 to 19-year-olds in a recognised industry training course.

"The new starting-out wage will help some of our youngest and most inexperienced workers get a much-needed foot in the door, in what is currently a tight labour market," Wilkinson said. "The starting-out wage was one of National’s 2011 campaign promises, and designed to provide 16- to 19-year-olds with the opportunity to earn money, gain skills and get the work experience they need."

New Zealand's unemployment rate was at 6.8 percent across the whole workforce at the end of June, but 13.1 percent for people aged between 15 and 24.

The reintroduction of the youth rate was part of a wider announcement by the government to lift national productivity and encourage greater participation in skilled industries such as engineering and information technology.

In its Regulatory Impact Statement, the Department of Labour, now part of the Ministry of Business, Innovation and Employment, said the changes may create a substitution effect where 16- and 17-year-olds become more attractive for employers than their 18- and 19-year-old counterparts, though it wasn't able to predict the level of bias.

"The Ministry considers that on balance, in the current economic environment, the proposed starting out wage will have positive employment impacts for the targeted groups," it said. "The Ministry cannot be certain of the precise effects of the starting out wage policy because a policy change of this type has not been observed in New Zealand before."

If uptake for the new measure is 30 percent of 16- and 17-year-olds seeking work, the Ministry predicts they will substitute for jobs held by 18 and 19 year old workers, who would have 400 fewer jobs available to them. However, a 50 percent uptake would see a net addition of 1,100 jobs among 16 to 19 year olds.

The department only consulted with other government agencies. The Treasury said the 80 percent minimum wasn't necessary, while the Ministry of Education warned it may impact on students' ability to finance their current or future tertiary studies.

MBIE said the government may want to consider broadening the starting out wage to other groups of workers who face barriers to the labour market in the future.

Government officials are working with the Ministry of Justice to assess whether the legislation is consistent with the Bill of Rights Act relating to age and employment status, and flagged the proposal may be at odds with New Zealand's international obligations.

Opposition parties flayed the move, with Labour Party leader David Shearer saying a low wage future was "no future at all."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news