Minister of Labour Kate Wilkinson today announced a new “starting-out wage” which will help provide young New Zealanders with more opportunities to get into the workforce.
The starting-out wage will give employers an incentive to take young people on by allowing eligible 16 to 19-year-olds to start out on 80 per cent of the minimum wage when they most need a chance to get a foot in the door.
Three groups will be eligible unless they are training or supervising other workers:
- 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 benefit
- 16 to 19-year-old workers in a recognised industry training course involving at least 40 credits a year
The wage will be simple for employers to implement and will apply for a blanket six months after the employee starts work with a new employer.
It is an unfortunate reality that the global recession has affected young people most sharply, and young New Zealanders were hit twice as hard when – at the end of their last term – Labour abolished youth rates.
Right when opportunities for young people to gain experience were tightening up, Labour’s policy cost up to 9000 more jobs for young New Zealanders.
But since 2008, National has committed heavily to addressing the issue of youth unemployment
The starting-out wage joins National’s work through Job Opportunities, Community Max, the Youth Guarantee, and 90-day trial periods as part of a package to create more opportunities for young people.
We know 90 per cent of 16 and 17-year-olds who leave school and drift are likely to end up on a benefit when they turn 18. These changes are simply vital if we are to address the causes of long-term benefit dependence.
The changes will come into effect from 1 April 2013. Click here to read more about the announcement.