Jacinda Ardern said: 'We're taking a different approach'
New Zealand’s government has unveiled this year’s budget, announcing a significant funding injection for the country’s welfare system.
Announced on Thursday by finance minister Grant Robertson, the government is prioritising funding boosts for housing, education, and infrastructure, as well as an increase in the weekly unemployment benefit.
Prime Minister Jacinda Ardern described it as a “wellbeing budget”, saying the government would direct reforms at tackling inequalities which have worsened as a result of the pandemic.
“Previous economic downturns have made inequality worse. We’re taking a different approach,” she said in a statement. “By investing in those who need it the most, we are driving the recovery by reducing need, at the same time as providing stimulus for our economy.”
Read more: Budget 2021: Major focus on upskilling workers amid talent shortage
New Zealand has led the rest of the world in its Covid-response, after imposing a nationwide lockdown early. But now businesses are struggling with serious skills shortages due to the huge drop in migrant numbers, especially in the farming and agriculture sectors. The labour market has rebounded far better than initially expected, with the most recent figures showing an increase in participation among women.
The Treasury has estimated that by the end of the fiscal year next June, the deficit is expected to reach $15.13 billion. It’s set to hit 5.3% of GDP by June 2022 before dropping to 0.6% of GDP by June 2025.
While Australia’s centre-right government has gone big on stimulating jobs and driving down unemployment, Ardern said now is the time to support those most impacted by the pandemic. The budget also looks to improve digital skills among the country’s small businesses, as well as job seekers or those looking to switch careers.
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The $44m digital skills scheme will enable 30,000 small business owners to attend training courses over the next two years. Training incentive allowances will also help up to 16,000 sole parents, carers and disabled people to access qualifications and improve their employment options in digital industries, at a cost of $153m.
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Speaking to HRD, Jane Livesey, CEO for Australia & New Zealand at tech firm Cognizant, said it was positive to see ringfenced funding targeted at improving digital skills.
“Through its $44 million investment in a digital skills programme, the Government has demonstrated a sound understanding of the importance of upskilling small businesses,” she said.
“Equipping these businesses with the skills and technology needed to compete in today’s digital economy has never been more important as the nation looks to take advantage of its strong recovery from the COVID-19 pandemic.
“New Zealand is uniquely positioned to lead the world as a digital economy, but only if we can provide the support and momentum needed to empower businesses and people to achieve that digital edge. So, it is more than encouraging to see the Government provide this support, especially because small businesses are at the heart of the economy.”