Hon Paula Bennett
Minister for Social Development and Employment
Minister for Youth Affairs

8 December 2009
Media Statement

Expect spike in unemployment as students seek work

The number of people receiving the Unemployment Benefit is reducing, but the impact from students seeking work this summer is expected to reverse the slide says Paula Bennett, Minister for Social Development and Employment.

Latest data shows that 58,541 people were on the Unemployment Benefit at the end of November. Treasury’s worse-case prediction was for 85,000.

``The policies this Government has introduced to tackle unemployment are working. Statistics show the number of people on the Unemployment Benefit has been consistently dropping, but we know that may change as more students enter the labour market over the summer break, ’’ Ms Bennett said.

This includes students who have finished secondary school and university students who have completed their studies.

``We are expecting it and are already doing something about,’’ Ms Bennett said.

``Work and Income is posting more new vacancies on its books and is working with more employers to help them find staff. In November alone 4,335 new jobs were listed, while initiatives targeting youth unemployment are also producing results

``In the past five months Job Ops and Community Max have put over 3,300 young people into work.

``You have to remember New Zealand has just come of out recession. One of the worse for decades, and unemployment tends to lag behind a recovering economy, but this Government is committed to getting more people into work and the results to date show we are doing just that.’’

ENDS

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