An extra $26.7 million will be put into the Job Ops programme in 2010-11 and an extra $12.6 million into the Employment Assistance programme in 2011-12.
The funding means the number of placements for 16 to 24-year-olds with low or no qualifications will double from 6000 to 12,000 through the Job Ops programme, which provides employers with $5000 to employ young people.
Young people were among the hardest hit in a recession because they often lacked skills and experience, Social Welfare Minister Paula Bennett said.
The extra funding for employment assistance would go into programmes like Straight to Work, encouraging employers to take on beneficiaries through skills investment subsidies and mitigating long-term unemployment through schemes like Taskforce Green.
The funding helped create extra jobs and training places for beneficiaries who needed extra help to get job, Ms Bennett said.
Industry Training Federation executive director Jeremy Baker said he was pleased to also see the Budget maintained increases to the Industry Training Fund.
"It shows that the Government sees the value that industry training delivers and it signals that it has faith in the sector to deliver even more."
