Claim youth rates not way to cut unemployment

Despite at least one in three young Otago people being jobless, the Dunedin Methodist Mission does not believe reintroducing youth rates is the answer.

The latest Statistics New Zealand Household Labour Force Survey shows more than 27% of 15 to 19-year-olds, or 39,300, in New Zealand are without a job.

The survey also showed Otago's unemployment rate was 5.3%, the highest since March 2010.

Dunedin Methodist Mission chief executive Laura Black said other parts of the country were seeing a recovery, but Dunedin "appears to be missing out"

According to Work and Income figures, 8800 people in Dunedin are on benefits, up 105 from this time last year, and 400 higher than in March 2010.

"Local unemployment is up, and so is the number of people on benefits. Dunedin's young people are bearing the brunt of this and it's time to get beyond blaming them for lacking skills, motivation or the 'right' attitude," Ms Black said.

"At least one in three Otago young people is jobless. This needs an urgent answer and reintroducing youth rates would only spread the problem to older workers," she said.

Youth rates, which the Government could consider reintroducing as a means to reduce the number of young unemployed, did not create jobs.

Rather, they made it harder for older people to find work and lowered the average pay rate for all, Ms Black said.

She believed effort and resources needed to be put into creating more jobs, achieving a high-wage economy and ensuring those without work skills got the training they needed to take up jobs.

"If we let young people linger in unemployment, we risk not only their futures, but our own.

Dunedin's future depends on a well-trained workforce in sustainable and rewarding jobs."

- ellie.constantine@odt.co.nz