Young People Face Tough Choices Amid Jobseeker Benefit Changes

The New Zealand government is set to implement significant changes to the Jobseeker benefit, affecting young people struggling to find work. Prime Minister Christopher Luxon recently announced plans aimed at addressing the high youth unemployment rate, currently at 12.9 percent among individuals aged 15-24, compared to the national unemployment rate of 5.2 percent. Starting in November 2026, young adults aged 18-19 whose parents earn over $65,000 will no longer qualify for the benefit, a move intended to encourage greater independence.

Luxon believes that many young people can find employment in regional areas, particularly in primary industries such as horticulture. “If you go outside of Wellington… in the primary industries, they’re crying out for young people to come and join those sectors,” he stated. However, this view is met with skepticism from both young job seekers and industry workers who argue that the reality on the ground does not align with the Prime Minister’s assertions.

For many, the option to move to regional areas for work is not straightforward. Rachel, a mother struggling to support her 19-year-old daughter, expressed her concerns about the implications of the government’s plan. “I’ve lost a lot of work and I’m now in that classic underemployed category, where I’m sort of running a deficit of about $500 a month to pay all my bills,” she explained. Rachel’s daughter has been looking for work throughout the year but has yet to find a suitable position, raising fears about the impact of losing access to the Jobseeker benefit.

Rachel’s daughter has considered moving to a small town where they previously lived, hoping to secure employment there. Yet, she quickly realized that the costs associated with relocating, such as renting a house, outweighed the temporary benefits of working in a new location. “Telling people to move towns for work is really unrealistic,” Rachel noted, emphasizing the importance of support networks for young individuals during this challenging time.

While some young adults have ventured into seasonal work in regions like Waikato, experiences vary. Oliver, who found a job picking fruit, lasted only four days before being let go due to seasonal demands. He expressed frustration over the lack of adequate training and support in such roles, questioning whether Luxon truly understands the challenges faced by young workers. “It’s kind of upsetting, isn’t it, because has he done those sorts of jobs before?” Oliver asked.

Industry insiders also contend that jobs in horticulture are not as plentiful as suggested. Dan, a horticulture worker in Christchurch, remarked that while the Prime Minister may see these positions as accessible entry-level jobs, they often require significant experience and physical endurance. “Most horticulture work required experience and knowledge, and it is not for the faint-hearted,” he stated, highlighting the demanding nature of such roles.

The proposed parental assistance test for the Jobseeker benefit raises broader questions about the government’s approach to youth unemployment. Critics argue that this policy may exacerbate the challenges faced by young people, rather than alleviate them. As the government prepares to implement these changes, the experiences of individuals like Rachel, Oliver, and Dan illustrate the complexities involved in addressing youth unemployment in New Zealand.

As the situation evolves, the government’s plans will undoubtedly impact many families. The upcoming changes to the Jobseeker benefit will force young people to navigate a landscape of increased financial pressure and limited job opportunities, making the need for a comprehensive strategy to support youth employment more crucial than ever.