11 April 2007

Unemployment Benefit numbers drop 35% in one year

The number of people receiving an unemployment benefit has dropped by a further 35 percent, or some 16,000, since March last year, Social Development Minister David Benson-Pope announced today.

The number of people receiving an unemployment benefit is now at a 27 year low at 28,845.

“In December 1999, when Labour came into office, 161,000 people were receiving an unemployment benefit. 132,000 have come off this benefit since then.

“In addition, this government has radically reduced youth unemployment numbers. In 1999 there were nearly 16,000 18 and 19 year olds reliant on an unemployment benefit. Now that number stands at around 1500. In the last year alone, there has been a 62 percent reduction for this age group,” said Mr Benson-Pope.

Long-term unemployment has also continued to drop with an 83 percent reduction since 1999, when there were some 70,000 people on an unemployment benefit for longer than one year.

“The past seven years have seen huge inroads into reducing benefit dependency. More than 135,000 people have come off benefits since December 1999.

“A strong economy and active labour market policies are making us the envy of the world with 68 percent of New Zealanders currently participating in the labour market.

“The Government’s investment in Working for Families is also paying dividends in encouraging sole parents back into the workforce. 13,000 fewer sole parents are now receiving a Domestic Purposes Benefit than in December 1999.

“Despite an aging population, we are doing well in reducing the growth of numbers needing a Sickness or Invalids Benefit. In the past year Sickness and Invalids Benefit numbers have risen by just 4,000. This compares with a drop in Unemployment and Domestic Purposes Benefit of more than 21,000 over the same period.

“Enhancements to the social support system through Working New Zealand will see more individualised support provided to people on all benefits, including Sickness and Invalids clients. Those seeking work will have increased opportunities, while people with temporary or long-term barriers to work will continue to receive assistance,” said Mr Benson-Pope.

ENDS

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