Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Starting-out wage will put young people in work


Hon Kate Wilkinson
Minister of Labour

9 October 2012

Starting-out wage will put young people in work

Labour Minister Kate Wilkinson has today confirmed the introduction of a new starting-out wage that will help provide young New Zealanders with more opportunities to get into the workforce.

Speaking at the launch of the Government’s Skilled and Safe Workplaces Progress Report, Ms Wilkinson said the new starting-out wage was the latest in a series of steps to help get more New Zealanders into jobs in the wake of the Global Financial Crisis.

“The new starting-out wage will create demand for young people by giving employers a real incentive to take them on,” Ms Wilkinson says.

The Minimum Wage (Starting-out Wage) Amendment Bill provides for eligible 16- to 19-year-olds to be paid no less than 80 per cent of the minimum wage.

“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.

“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.”

Three groups will be eligible unless they are training or supervising others:

· 16- and 17-year-olds in their first six months of work with a new employer

· 18- and 19-year-olds entering the workforce after more than six months on benefit

· 16- to 19-year-old workers in a recognised industry training course involving at least 40 credits a year.

Those who are training or supervising other staff must be paid at least the adult minimum wage.

The starting-out wage will be simple for employers to implement, and will apply for a blanket six months after starting work with a new employer.

“The youth minimum wage was abolished in 2008 by Labour in a move that resulted in the loss of up to 9000 jobs,” Ms Wilkinson says.

“The starting-out wage is part of a wider package to help get more young New Zealanders into work or training.

“This Government’s continued focus on getting young people off benefit into work has already seen thousands of young people benefit from subsidised work placements and pre-employment training.”

This includes 17,000 placements for young people through Job Opportunities and Community Max and 2000 through Job Opportunities with Training. A further 3500 young people have been through the Limited Service Volunteers programme.

The Government’s Youth Guarantee scheme has seen $97 million in fees-free tertiary places for 16-and 17-year-olds, with the investment increasing to $127 million by 2016. The scheme is in high demand with 7345 places being taken up in 2012 alone.

This year the Government consolidated the Work and Income employment programmes Job Ops and Straight to Work into the $62 million Job Streams package, a simpler, more flexible business-focused model.

“These opportunities are vital if we are to address long-term benefit dependence, as 90 per cent of 16- and 17-year-olds who leave school and drift are likely to end up on benefits when they turn 18,” Ms Wilkinson says.

”The Government’s 90-day-trial periods are also helping employers provide job opportunities for thousands of workers. The starting-out wage is another initiative to help more young people into jobs,” Ms Wilkinson says.

The starting-out wage is due to come into force from 1 April 2013.


ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news