Main benefit recipients decline in March

The number of people on New Zealand's main benefit and jobseeker assistance have declined in March, according to recently released data, with the government attributing it to the quick COVID-19 response.

The latest Monthly Benefits Update for March 2022 revealed that the number of people receiving the main benefit continued to decrease in March 2022, down to around 348,339 people. 

According to the update, the decrease is because of 5,700 fewer people receiving the Jobseeker Support to reach 177,600, with more people exiting into work; and 4,300 fewer people getting the Jobseeker Support Student Hardship, as students resume their studies.

"There are 19,883 fewer people on a main benefit compared to December, with near record numbers of people moving into work," said Social Development and Employment Minister Carmel Sepuloni in a statement.

"The figures also show an annual fall of 4.8% in the number of people receiving a main benefit."

According to Sepuloni, the decrease of people relying on main benefit can be attributed to the government response to COVID-19.

"The government's quick response to COVID-19 has worked, with initiatives such as the Wage Subsidy and our economic support packages keeping people in work and delivering record low unemployment," said the minister.

March 2022 also saw 31,524 people finding work in the first three months of the year, according to Sepuloni, while the number of people receiving a Jobseeker Work Ready main benefit is at 100,854.

"The investment we have made in front-line work focused case management is helping people move off benefit and back into work quickly. This investment is also paying off for longer term beneficiaries with 10,506 people who had been on a main benefit for a year or more finding employment in the March Quarter," said Sepuloni.

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Opposition's criticism

Louise Upston, National’s Social Development and Employment spokesperson, criticised that Labour failed to tackle benefit dependency among the population.

"Despite record job vacancies, figures released today show there are still 177,000 people on the Jobseeker benefit – a staggering 56,000 more than when Labour came into office," said Upston in a statement.

"Perhaps even more concerning than Labour’s failure to get people off welfare and into work at a time of severe labour shortages, is the fact that long-term dependency has soared. The number of people who have been receiving the Jobseeker benefit for more than a full year is 43,000 higher than in 2017," she added.

"This should have alarm bells ringing in the Beehive, but instead we get yet more denial this is even a problem."

Sepuloni brushed aside criticisms, however, as she pointed out that data shows the government is doing better now than in the Global Financial Crisis.

"There are now 11.1% of working age New Zealanders receiving a Main Benefit two years on from the beginning of the pandemic, this compares to 13.1% two years after the Global Financial Crisis," said Sepuloni.

"The facts clearly show that when it comes to keeping people in work, we are doing better in our response to COVID-19 than National did during the Global Financial Crisis," she said.