Government sees significant rise in Jobseeker benefit exits

Upston says these are positive signs that welfare reforms are working

Government sees significant rise in Jobseeker benefit exits

A total of 33,147 people left the Jobseeker benefit between July and December after finding work, marking a 22% increase compared to the same period in 2023, according to Social Development and Employment Minister Louise Upston.

Upston attributed the development to the government's welfare reforms delivering results.

"There are positive signs that our welfare reset and the return consequences for job seekers who don't fulfil their obligations to prepare for or find a job is working," Upston said in a statement.

According to the minister, other achievements by the government for its welfare reforms include:

  • 10,000 more job seekers in case management
  • 2,100 more places for young people to get community-led job coaching
  • A Traffic Light System to help job seekers understand and comply with their benefit obligations
  • More regular work seminars to support job searches
  • More comprehensive needs assessments for up to 70,000 job seekers
  • Personalised job plans to help job seekers overcome the challenges holding them back from finding work
  • "Beneficiaries-First" targets for Flexi-wage and Mana in Mahi

Government's welfare targets

Meanwhile, the number of Jobseeker recipients leaving the benefit is aligned with a 126% rise in the number of benefit sanctions issued during the second half of 2024.

The sanctions are part of the government's efforts to reduce the number of beneficiaries of Jobseeker Support by 50,000 by 2030, which could save the government $2.3 billion in welfare payments.

Upston said their focus is on young jobseekers, who are at greater risk of staying on a benefit long-term.

"Under the last government, the forecast for how long someone under 25 would be on a benefit over their lifetime blew out to more than 20 years," she said.

To further achieve its welfare targets, the minister said the government will introduce new non-financial sanctions and will only grant Jobseeker Support for six months at a time.