Incentive element emphasised

Waitati job-seeker Neil Cornish promotes himself. Photo by Craig Baxter.
Waitati job-seeker Neil Cornish promotes himself. Photo by Craig Baxter.
A reduced hourly rate for young people could be the incentive employers need to take on another staff member, Dunedin City Council economic development unit manager Peter Harris says.

The Government yesterday announced employers from next April would have the option of offering eligible teenagers a "starting-out wage" of $10.80 an hour for the first six months of their employment.

That would be a reduction of $2808 over six months if the young person was employed full-time, an amount which could make the difference for an employer, Mr Harris said.

"It is not an insignificant amount, but it is not clear whether the Government has done enough research to know whether it is enough of an incentive to make a difference."

Employers would still have to have jobs available and the confidence in the economy to fill them, he said.

Times were tough and it would be good to think the starting-out wage resulted in new jobs, he said.

"If new jobs are created, that is great and something we should be celebrating. Those [employers] taking on staff are the heroes of the economy."

In Clutha District, the Mayors Taskforce for Jobs has a target of eliminating youth unemployment.

Clutha Youth Council member Brendan Morrison (23), who supports Mayor Bryan Cadogan's goal, said yesterday the starting-out wage could help by opening up work opportunities for teenagers and allowing them to "ease in" to work.

"Getting young people engaged in work is important.

"This might encourage employers to take young people on."

Mr Morrison, a Kaitangita dairy farm worker, said dairy farmers might use the incentive to employ relief milkers, a role which would introduce them to farm work and might lead to permanent employment.

Mr Cadogan was unable to be contacted for comment.

Neil Cornish, a job seeker at the other end of the age spectrum, said yesterday he would happily work for $10.80 an hour if it meant he was able to get a job.

Despite trying for about a year, Mr Cornish (59), of Waitati, who has worked as a small motor mechanic and a truck driver, has been unable to find work.

He received about $210 a week on the dole - money he was "incredibly grateful for" - but said although he owned his own home and was a good budgeter he needed about $100 a week more to meet basic living expenses.

"Give me a job - any job.

"However hard you try, you can't make $210 turn into $300.

"If I could get $10.80 an hour I would be rapt, as that would give me enough to live on. If I could earn the minimum [adult] wage I would be rich."

Mr Cornish said the introduction of the starting-out wage could disadvantage older job-seekers like himself as it might influence employers to hire a teenager rather than an older person.

But he said it could be "a foot in the door" for teenagers seeking their first job.

allison.rudd@odt.co.nz

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