Finance Minister Bill English gave some very sobering statistics during question time yesterday:
Of course, the Government is focused not just on savings this year; we are focusing on intergenerational savings. If we resolve problems in complicated families and struggling communities, then we will be spending less in the long run. For example, 1 percent of the children born in 1990 had contact with Child, Youth and Family before the age of 5. They had parents who were in contact with the corrections system and had been in households supported by benefits for most of their lives. Thirty-six percent of people with these three factors will be on a benefit at age 35. So you know that pretty much from when they are born, compared with 9 percent of the general population. Almost 5 percent of this group will be in prison at the age of 35. Some of these individuals will cost around $1 million each, just in corrections, Child, Youth and Family, and income support costs , and that represents significant misery in families and communities. We will continue to change things in order to change their lives.
This is why the government has taken an investment approach to welfare – spending more in the short term to help people off benefits and into work which will improve their lives, those of their children and pay social and financial dividends in the medium and long term.
Unemployment is still too high at 5.8 %, but the employment rate has reached an all-time high of 69.6%.
. . . “This is the greatest share of New Zealanders we have ever seen in the labour force. The largest increase came from 20 to 34-year-olds, who accounted for nearly half this year’s increase,” labour market and households statistics manager Diane Ramsay said.
Over the year to the latest quarter, the number of people employed increased 74,000 (3.2 percent) while the number of people unemployed fell 1,000 (0.6 percent), as measured by the Household Labour Force Survey. . .
That’s the fourth highest in the OECD.