But monthly data paints declining picture for benefit numbers
The number of individuals receiving the Jobseeker Work Ready benefit has surged by nearly 12% over the past year, according to new data from the Ministry of Social Development (MSD).
As of September 2024, approximately 12,300 more people are on this benefit, bringing the total increase to 11.8%, the New Zealand Herald reported.
Social Development and Employment Minister Louise Upston acknowledged the challenges, attributing the growing unemployment numbers to a "lingering consequence" of years of high inflation, high government spending, and periods of economic recession.
"Jobseeker numbers have long been forecast to get worse before they get better, and we knew this when we set our target to reduce the number of people on Jobseeker Support by 50,000 over six years," Upston said as quoted by the Herald.
While the Jobseeker Work Ready numbers have increased, the "health condition or disability" payment has also seen significant growth.
This category rose by 11,000 individuals, reflecting a 14.3% increase since September 2023.
Decline in Jobseeker beneficiaries
Despite these figures, recent month-on-month data indicate a potential turning point for the Jobseeker Work Ready category, which saw a decrease of about 300 recipients, or 0.2%, in September 2024 compared to August.
This decline marks the first drop in numbers since April 2024, the New Zealand Herald reported.
"We're already seeing positive signs that this Government's more proactive approach to supporting jobseekers is working, with the latest monthly stats showing more than 2,000 people cancelling their Jobseeker Benefit because they found work between July and September compared to the same period last year," Upston said.
The New Zealand government has an "ambitious target" to reduce beneficiaries of Jobseeker Support by 50,000 by 2030.
To achieve this goal, it had mandated stricter rules for beneficiaries of Jobseeker Support, such as introducing mandatory work seminars to reduce welfare dependency.
