Government begins killing 3000 jobs this weekend

“By increasing the minimum wage to $16.50 an hour, the Government is condemning 3000 young, unskilled workers to the scrapheap”, says ACT Leader David Seymour.

Official analysis by the Ministry for Business, Innovation and Employment shows the ‘restraint on employment’ as a result of the minimum wage hike could be about 3000 jobs.

“In a classic example of good intentions and poor results, some of New Zealand's most vulnerable workers will be stripped of an opportunity to gain valuable skills and work experience.

“Official advice to the Minister of Finance also shows minimum wage increases don’t increase productivity or economic growth, and are a poor way of tackling poverty given being on the minimum wage is a transitional stage for many workers.

“The pressure on vulnerable workers will only increase as the Government commits to a minimum wage of $20 an hour by 2021.

“New Zealand already has one of the highest minimum wages in the Western world. This means that the potential for job losses in future is even greater.

“The Government must instead focus on the underlying drivers of a high-productivity, high-wage economy - most importantly, a world-class education system where parents and students have choice.

“Forcing businesses to pay workers more than those workers can produce is the simplest recipe for higher unemployment”, says Mr Seymour.

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