What is the Government doing about this – and what are the oppositions ideas?

The Household Labour Force survey is out.

There are now 159,000 officially unemployed in New Zealand. That's not including those whose benefits are suspended.

There are now 43,000 more people out of work than there were in November 2008.

Nearly 100,000 people are unemployed but are not receiving a benefit.

21% of those on benefits are caring for children under 6.

30.6% of recipients are aged 18 – 24 years.

34% of beneficiaries are Maori.

Maori unemployment is at 16.4% ( up from 15.4 % in February) and Pacific unemployment is at 14.1%, both big increases from 12.6% and 12.8% respectively a year ago.

At the end of June this year, 333,000 working age people were on main social security benefits - an increase of 75,000.

45,000 of them are teenagers.

19,000 people lost their jobs in the past three months.

In the last three months 7000 people have given up looking for work and have dropped out of the labour force.

The number of those on benefits has increased 29% in the 2 years ending June. That's one in three extra beneficiaries.

That's not including the "hidden unemployed" -the students, those whose partners work, those who work part time but want to work full time.

And the chances that you are one of the above is the highest since 1999.

What’s worse, there are now 255,700 jobless (either unemployed, not ‘actively’ seeking work, or not able to start work immediately).

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Treasury can't forecast unemployment

In December Treasury said unemployment would peak at a 7%. John Key said that Treasury was being too pessimistic. Figures released shows that unemployment is now 7.3%. The last time it was that high National was in Government, too. But there is one major difference: the 10 years Labour spent getting people off the unemployment benefit ( and off ACC) to sickness and invalids benefits:
[h/t Lindsay Mitchell]

I don't think unemployment has peaked yet - and the Government is silent on what to do about rising unemployment except blaming it on population growth - but 25.5 percent of all job seekers have been out of work for more than 6 months.Anyone know how many jobs the job summit created?

Employment is going to be a key issue at the next election. The question voters will be asking is: Can Labour do any better? I think it can.

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Not exactly a luxurious life

I wouldn’t get too concerned that the government is planning to stick 7000 unemployed people into McDonalds. The scheme is over a five years period, equating to 26 per week on average. That is if the 7000 figure is reached. What if they only get 4000 into McDonalds – that’s about 15 per week.

And that is about how many people are being employed at McDonalds every week anyway, due to the high staff turnover. But this deal is not driven by a desire to get people work. It is driven by a desire not to pay so much money on benefits, as John Key explains:

When we spend a lot on benefits it means there are a lot of New Zealanders not really earning a lot. Life on a benefit is not exactly a luxurious life.

When lots of people work at McDonalds, it means there are a lot of New Zealanders not really earning a lot. Working at McDonalds is not exactly a luxurious life.

What if they were to offer a McDonalds fulltime position - 30 hours a week in WINZ language - to a main unemployed breadwinner with children? If they were to get $15.00 an hour, they`d get $450 a week ($23,400 a year), compared with a benefit payment of $18,850 a year before tax. That's an extra $87.50 a week.

Beneficiaries can earn $80.00 each week and retain the benefit. Effectively squared up. But the person in this example will be spending money on transport to get to work so he is worse off by working at McDonalds.

Would you do it?

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