Budget factsheets 2005 - Addressing Long-Term Unemployed
The Government is investing more than $21 million over the next four years in initiatives aimed at helping long-term unemployed people into work.
While New Zealand has the lowest level of unemployment in the OECD, this funding recognises the need for more intensive services to support people into employment who have been out of work for a long time.
This initiative builds on Government initiatives announced late last year to support an integrated model for managing the long-term unemployed, including:
- Intensive work-readiness training for clients in Manukau, Northland and Wellington reaching three years out of work.
- An Urban Employment Service for all clients who have been unemployed for more than three years.
- Increasing the annual maximum wage subsidy payment for clients out of work for four or more years from $11,000 to $16,900 (GST inclusive).
Between October 2004 and October 2005, an estimated 1,700 people on Unemployment Benefits in Manukau, Northland and Wellington will reach three years out of work. This initiative will see these clients intensively case managed through the integrated model. The model will also be applied to all clients throughout New Zealand who have been on Unemployment Benefit for more than 10 years.
Clients who do not achieve employment through intensive case management may be provided with intensive vocational assessments to identify barriers to employment, and/or intensive work readiness training. If they are still unable to achieve employment, they may be offered subsidised jobs to help them re-acclimatise into the labour market.
The Urban Employment Service is aimed at assisting long-term unemployed clients around the country. Work brokers will be mobilised to pro-actively visit clients in their homes and provide them with information on the range of employment assistance activities and jobs available.
