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LINDSAY MITCHELL: Recession Starts to Bite

In just one month the number of people receiving a main benefit has risen by almost 3,000.


Data released today shows that the percentage of the working-age population dependent on a main benefit rose from 11.2% at the end of June 2023 to 11.3% at the end of July 2023.


Over the same period in 2022 the increase was just 1,100 claimants meaning the proportion of the working-age population stayed at 11%


Most of last month’s increase was due to a rise in Jobseeker numbers with approximately 1,800 more on Jobseeker Work Ready and a 900 increase in Jobseeker Health Condition/Disability claimants. The first reflects a weakening labour market while the second reflects an unresponsive and ineffective health system.


MSD acknowledges that, “The work exit rate for main benefits in July 2023 was relatively low compared with July months in prior years. In recent months, we have seen a reduced demand for labour, as indicated by the decline in online job advertisements in the June 2023 quarter.” They offer no rationale however for why numbers unable to work due to a health problem are over and above forecasts.


Māori made up the majority of the increase with 1,400 more main benefit clients; NZ European accounted for 800; Pacific people 400 and Asians 200 (almost 400 people did not specify an ethnicity, and some specified more than one ethnicity.)


Three years post the initial Covid lock-down key statistics continue to head in the wrong direction:


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NB: The Monthly Benefit data series began during the first Covid lockdown and only dates back to April 2019.



Lindsay Mitchell blogs here









 
 
 

16 Comments


Montgomery
Aug 13, 2023

As long as people know there's a safety net they'll keep abusing it, it's a simple fact of Human behavior.

We obviously need some form of income assistance but it needs to be more strongly regulated with tightly defined time frames and expected responsibilities from those who receive it from the taxpayer.

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Unknown member
Aug 12, 2023

As a tradesman of 35 years, please enlighten me as to why my trade is struggling to find experienced electrical workers as we have a subsidized apprentiships scheme in place, ok, a rhetorical question.

But many trades are experiencing a massive decline in their pool of talent, and sadly resort to poaching as a means of fulfilling a position required.

We have made it far to easy in new Zealand to enable those who lie on the couch for a living to pick their " dream job" instead of starting at the bottom , where we all have.

I hate to say this, but I will, and am going to.

In the past year, at the company I part own,…


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Gerard
Gerard
Aug 12, 2023
Replying to

The work ethic declines in direct relation to the ease with which those who prefer to "lie on the couch for a living" can get themselves onto a benefit. Most people on a benefit deserve it because they have genuine problems. Then there is a large slice of the other, and they are contemptible.


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Woodstack
Woodstack
Aug 11, 2023

Job-seeker, a coverup for CAN'T BE BOTHERED WORKING, the smoke and mirrors approach to mismanaging the economy......

WE NEED CHANGE and WE NEED IT NOW....

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Kloyd0306
Kloyd0306
Aug 11, 2023

One clue is the name: Job Seeker Benefit. A name clearly dreamt up by some pimply-faced socialist lefty trying to disguise what it really is.

These people are mostly unemployable and as for actually seeking work, well that is the big joke. Most are not the slightest bit interested in working let alone seeking to work.

Reduce the prison population and hope no one notices.

Cover up the true unemployment situation by giving it a fancy, fake name.

All done intentionally by the worst government in the country's history.

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Timeforthetruth
Aug 11, 2023

I'll be honest, I've been a left voting citizen most of my life because I believe in a fair go for everyone but the encouragement for these people who are handout reliant to keep breeding has got worse and is never mentioned and they take it for granted. Why should I pay for your breeding choices?


Seriously, we al know the worst impact on this climate change environment is more humans. They should be made to visit India where swarms of people are living on top of each other and often in rubbish dumps. What a mess we are in where taxpayers are subsiding this madness!

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