A new scheme to get youth into jobs should include a guarantee no existing workers are made redundant, Labour says.
The Government announced at the weekend a package of schemes to get youth into training or employment, but said the independent youth benefit would no longer be available.
One initiative was a $20 million Job Ops programme to give 4000 low-skilled young people a wage subsidy of $5000 over six months to get them into jobs.
A business would get $3000 for employing a person up front and then $2000 at the end of the six-month period.
Social Development Minister Paula Bennett said today Work and Income had already had more than 50 inquiries from employers about the youth package and 21 job opportunities were registered.
"And I am delighted that after just 24 hours, two young people have already been placed into jobs. One is a factory worker, the other is a cafe assistant, and they actually started work today," she said during question time in Parliament.
Labour MP Darien Fenton was concerned some companies might displace existing staff.
"Will the minister guarantee that no older workers will find themselves being made redundant and replaced by a youth worker as a result of her government's youth opportunities package," she asked.
"And will she make it an obligation on businesses, that while on the scheme they are not able to make any of their existing workers redundant, like she has for those on the nine-day working fortnight?"
Ms Bennett did not offer such an assurance but said Work and Income was making it clear to employers the scheme was for new entry-level roles.
"We make no apologies for focusing on youth and on our young people in that particular package," she said.
Labour deputy leader Annette King said forecasts showed youth unemployment would rise to 20 percent by 2010 leaving 36,000 youth unemployed - meaning thousands would not be able to access the places in the package.
Ms Bennett said the forecasts were based on the household labour force survey which included young people "legitimately not engaged in anything" - for example, taking a break before study or travel.
"Those figures are predictions, not targets as members of the previous government seem to see them. The role of this Government is to try not to reach those numbers, and that is what this package is all about."
Another scheme in the package was the $40.3m Community Max which will aims to get 3000 people places in community programmes paying the minimum wage for 30 hours a week, with a $1250 training payment paid to the community group.
Ms King said that scheme was a watered down version of the Enterprising Communities scheme, which had employed around 3000 New Zealanders of all ages. The new scheme was for a shorter period and available only to youth.
Ms Bennett responded: "The Government stopped that scheme simply because we did not think it was working."
Labour MP Jacinda Ardern asked Finance Minister Bill English if the $152m package's funding came from $167m "slashed in the budget" from skills training, scholarship schemes that helped low-income young people into tertiary education, and the Enterprising Communities fund."
Mr English said the Government had spent time evaluating the effectiveness of spending decisions left over from the last government, "which clearly made decisions when it thought that surpluses would go on for ever.
"Some of those decisions we have now reversed. In this case, we are focusing strongly on keeping young people in contact with the workforce and skills. We believe that is the right response to the recession."
Labour and the Greens yesterday raised concerns about the removal of the independent youth benefit.
There were 1750 16- and 17-year-olds receiving that benefit as of June. Last year at the same time there were 1242 and in 2007 there were 1294.
The benefit is for youth who have lost the support of their parents or guardians who are in secondary education or employment related training, or looking for work; or sick, injured, disabled or pregnant.
Ms Bennett has said the benefit's future would be part of a report to a Cabinet committee in November.
