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Employment, 90-day Trial Period—Effect on Job Creation

Wednesday 9 February 2011 Hansard source (external site)

Bennett10. DAVID BENNETT (National—Hamilton East) Link to this
to the Minister of Labour

What reports has she received regarding the effects of the 90-day trial period on job creation?

WilkinsonHon KATE WILKINSON (Minister of Labour) Link to this

I have seen a report from the New Zealand Institute of Economic Research that concluded that the trial period increased hiring from small employers by 6 percent above expectations. During tough times in the labour market, trial periods are helping Kiwis to get into jobs.

BennettDavid Bennett Link to this

How many jobs has the trial period helped to create?

WilkinsonHon KATE WILKINSON Link to this

Heaps. The New Zealand Institute of Economic Research has estimated that 13,000 New Zealanders have jobs they would not otherwise have, because of the trial period. That is 13,000 New Zealanders. These findings are consistent with earlier research from the Department of Labour. I expect the number of jobs created to grow as the trial period becomes available to larger employers from 1 April this year.

FentonDarien Fenton Link to this

Is it not true that the conclusion from the New Zealand Institute of Economic Research that the fire-at-will law appears to be working is based on only 6 months of raw data showing that hiring has declined less in small firms than in big firms; if so, does the latest increase in unemployment mean the fire-at-will law has stopped working?

WilkinsonHon KATE WILKINSON Link to this

I think it is fairly obvious to everybody that the trial period is working and is creating jobs for New Zealanders. It is giving New Zealanders opportunities to get their foot on the employment ladder, which they might not otherwise have been able to do, and it is giving businesses the confidence to take on people whom they might not otherwise have employed.

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