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Labour Force—Increased Participation

Tuesday 16 May 2006 Hansard source (external site)

BEYER11. GEORGINA BEYER (Labour) Link to this
to the Minister for Social Development and Employment

What reports has he received on increased participation in the labour force?

Benson-PopeHon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this

I have seen the household labour force survey for the March 2006 quarter, which shows that the Government’s aim of increasing labour market participation is clearly on track. In the March quarter we had the highest-ever recorded rate of labour force participation, at 68.5 percent, and the highest-ever recorded level of employment, with 2.1 million New Zealanders now in work—that is up 23,000 this quarter, and up 313,000 since 1999. That is around 135 additional New Zealanders in work each day, every day, since 1999. Thirdly, we have the lowest level of underemployment—that is, people who want to work more hours and are unable to.

BEYERGeorgina Beyer Link to this

What specific changes have occurred with regard to labour market participation?

Benson-PopeHon DAVID BENSON-POPE Link to this

Particular highlights of the household labour force survey are that female employment increased at above-average rates, and is at a record high; there was a significant shift from part-time to full-time employment; Māori employment is at a record high; and for those aged between 20 and 24 years employment levels rose by 10.3 percent in the last year, and the participation rate of that cohort rose sharply to 78.9 percent.

BEYERGeorgina Beyer Link to this

What initiatives has he seen that might put increased participation at risk?

Benson-PopeHon DAVID BENSON-POPE Link to this

I have seen a member’s bill in the name of Wayne Mapp that proposes to make the decision to enter employment or change jobs more risky and less secure. In particular, for those groups making a decision about whether to enter the labour force for the first time, such as youth; or about to return to the labour force, for example, women; and for groups such as Māori, who are disproportionately represented in the numbers of long-term unemployed, the prospect of being dismissed within 90 days for no reason whatsoever must be a deterrent to labour force participation.

BrownPeter Brown Link to this

Is it not true that young people aged 15 to 19 are overly represented in the unemployment figures, and what effect does he believe abolishing the minimum youth wage will have on their employment?

Benson-PopeHon DAVID BENSON-POPE Link to this

I do not have any information about the speculative results of such a change.

BrownPeter Brown Link to this

I raise a point of order, Madam Speaker. I admit there were two parts to the question, but I think that at least one part should have been answered: “Is it not true that young people are highly represented in the unemployment figures?”.

Benson-PopeHon DAVID BENSON-POPE Link to this

The member will be only too aware of the efforts that Work and Income New Zealand, and the Ministry of Social Development generally, are making to further increase the participation rates of young people in the workforce.

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