Stats show time to ditch youth minimum wage

The Youth Minimum Wage has not made any difference to improving youth unemployment and the Government should ditch it in this year’s round of minimum wage changes, says Labour’s Associate Labour Issues spokesperson Darien Fenton.

“It is unsurprising that employment statistics released this week show youth unemployment is worsening.

“According to a survey of employers conducted by the Employers and Manufacturing Association this month, just 7 per cent have hired young people on the youth minimum wage and 95 per cent say it hasn’t encouraged them to create new positions.

“The comments from employers in the survey echo those presented to the Transport and Industrial Select Committee last year when the Government insisted that cutting young workers pay would help youth unemployment.

“Employers told the Government a mix of measures are required to address youth unemployment, and reintroducing youth rates for the first time since the early 2000s was not a priority.

“No-one should be surprised that employer’s attitudes haven’t changed and youth unemployment is still rising.

“The Government needs to show it has bigger ideas for addressing youth unemployment than cutting the pay of young workers,” Darien Fenton says.

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