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Revealed: The Jobseeker on a benefit for 40 years

Author
RNZ,
Publish Date
Fri, 4 Apr 2025, 4:11pm

Revealed: The Jobseeker on a benefit for 40 years

Author
RNZ,
Publish Date
Fri, 4 Apr 2025, 4:11pm

By 

The longest anyone on  has been continuously receiving any benefit is now more than 40 years, data from the  shows.

It has released data that showed in February the longest anyone who is currently receiving Jobseeker Work Ready support  was 2291 weeks, or almost 44 years.

MSD group general manager for client service delivery  said it was possible a person could have transferred between various benefit types, some of which might not have required them to be available for work, during that time.

鈥淭his will depend on their circumstances and eligibility for those benefits during this time.鈥

He said the fact that the person had been on a benefit so long did not indicate that they had never had a job. They might have had  at the same time.

鈥淎cross the Jobseeker Support Work Ready population the average duration on benefit was 116 weeks and the average duration on Jobseeker Support health condition or disability was 223 weeks as of December 2024,鈥 he said.

The average time in December 2016 was 123 weeks for Jobseeker Support Work Ready, and 224 for .

Infometrics chief executive Brad Olsen said the drop in average length of benefit around 2020 and again more recently was consistent with more people going on to Jobseeker.

He said household labour force data showed the number of people studying or training had increased, which was expected in a tougher labour market.

There had also been a 鈥渇airly large鈥 increase in the number of people who said they were off work because they were looking after themselves due to a sickness or injury, he said.

鈥淭here are a lot of mental health challenges out there.鈥

But the largest increase had been in  and not available, he said.

鈥淪ome people realistically have complex needs and it鈥檚 not as easy to get into the workforce without supports.鈥

He said feedback he had heard around the country was that many employers struggled to find people who could turn up consistently.

鈥淭hey鈥檒l show up one day but they don鈥檛 do the entire week 鈥 employers need the consistency. So there are some real challenges there as well.鈥

ANZ senior economist Miles Workman said the amount of  鈥 people who had been out of work for more than a year 鈥 had varied over the years.

鈥淎 prolonged downturn or super disruptive shock could impact the more-than-one-year measure. However, policy changes will also play a role.鈥

He said in the 1990s, longer-term unemployment was high due to economic reforms and a large global recession.

Whang膩rei man Ric said he and his partner started getting Jobseeker Support when he left work to care for his sick father.

They got between $50 and $230 a week depending on how many hours his partner worked.

He said he felt he had been strongly encouraged to transition off the benefit, and was required to go to the local Work and Income office monthly to review the opportunities available.

鈥淚 had to be proactive in my job search and provide proof of my efforts during these monthly meetings to remain eligible for the benefit. They made me feel that receiving support is a right in , but not something to be taken advantage of 鈥 at least in my experience as a middle-aged man.鈥

He had found the rate at which some support was abated as income rose had an impact.

鈥淲hen we were both working full-time, the  was more substantial if we were on a low income, compared to when we were on a middle-range income. I found that when I got a $50 pay rise, I ended up earning $1000 more than the low-income annual threshold, which meant we received a few hundred dollars less per week in support. So, I reduced my hours to stay earning less in order to get more assistance.鈥

University of Auckland associate professor Susan St John. Photo / Cole Eastham-Farrelly, RNZUniversity of Auckland associate professor Susan St John. Photo / Cole Eastham-Farrelly, RNZ

University of Auckland associate professor Susan St John said Ric鈥檚 experience of ending up worse off as he tried to shift off government assistance was not uncommon.

She said the abatement thresholds had not been adjusted for years and were 鈥渁bsurdly low鈥.

Once a household earns more than $160 a week, their entitlement to the benefit drops. Working for Families entitlements are also clawed back as income rises.

St John said if the  had been , it would not start to be reduced until a household earned closer to $60,000, rather than the $42,700 it is at present.

A recent paper from Treasury had highlighted that, for many people, there was limited benefit in working extra hours and some people, particularly single parents, were worse off.

鈥淚t鈥檚 not just that you lose 27c of Working for Families, but you might be on a 30% tax rate, then you鈥檝e got your student loan at 12c and your ACC at 1.6. Some families are caught up in the accommodation supplement, which means they lose some of that 鈥 it鈥檚 easy to do the sums and come up with some very frightening figures.鈥

St John said the very high effective marginal tax rate meant it was not worth earning more than $160 for many people.

鈥淐umulatively that makes that extra dollar not worth having. That is such a discouraging thing.鈥

- RNZ

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