Youth employment policy 'not enough'

Business advocacy group BusinessNZ has welcomed the Government's focus on youth employment in its employment relations policy announced yesterday but says more needs to be done.

Chief executive Phil O'Reilly said the "starting-out" wage and changes around payment for new entrants were a good move forward.

"They are not enough, however. More needs to be done, especially around creating clearer pathways from school to tertiary education to work, with linkages to other youth employment initiatives already in place."

Employers would look forward to further announcements from the Government in that area. BusinessNZ hoped all political parties would put up thoughtful policies around the issue of youth employment - not just focused on wages but skill pathways as well, he said.

Prime Minister John Key announced in National's workplace policies that he would introduce a starting-out wage of 80% of the adult minimum wage for three groups of people:

• 16 and 17-year-olds in their first six months of work with a new employer.

• 18 and 19-year-olds entering the workforce after more than six months on a designated benefit.

• 16 to 19-year-old workers training in a recognised industry course involving at least 40 credits a year.

Those who were 16 and 17 and who left their employer after working for more than six months would remain eligible to go back on the starting wage until they completed six months with their new employer.

Eligible 18 and 19-year-olds who had been on a benefit and then completed six months work must be paid the full adult wage, even if they transferred between employers, Mr Key said.

"The starting-out wage will give some of our youngest and most inexperienced workers a much-needed foot in the door. It will provide them with valuable work experience that may not have otherwise been available to them."

In 2008, Labour abolished the youth wage, in a move that research commissioned by the Department of Labour suggested had destroyed up to 900 jobs for 16 and 17-year-olds, Mr Key said.

National was conscious the global recession significantly affected job opportunities for young people and the starting-out wage would provide young people with the opportunity to earn money, gain skills and get the work experience they needed, he said.