Youth jobless rate soars to 19.4%

JO GILBERT
Last updated 05:00 06/01/2011

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New Zealand's youth unemployment rate has surged to nearly 20 per cent – one of the highest levels in almost 20 years.

Organisation for Economic Co-operation and Development (OECD) figures for the September quarter last year showed 19.4 per cent of Kiwis aged between 15 and 24 were unemployed – the 15th-highest rate of 36 OECD countries.

New Zealand youth unemployment hit a peak of 23 per cent in 1992.

New Zealand Institute of Economic Research principal economist Shamubeel Eaqub said the youth jobless rate was expected to decline this year as the economy rallied.

Young people were the first to suffer during tough economic times, and the high figure was "part and parcel" of the recession, Eaqub said.

Young workers had less skill and experience and were often in more vulnerable sectors, such as hospitality and retail.

"Often they're in the kinds of jobs where there is less job security, high turnover, lower wages and more part-time and casual hours," Eaqub said.

Student Job Search chief executive Paul Kennedy said a "big communication gap" between employers, universities and young people was hindering employment levels as youths were not trained or prepared for market needs.

"Universities are too focused on just providing degrees and not setting up young people for the jobs available," he said.

"Degrees used to guarantee jobs, but now it's almost a starting market requirement. Employers are more demanding."

Communication between the parties needed to be "dramatically improved", Kennedy said.

Between the third quarters of 2007 and 2010, unemployment among young Kiwis increased 8.2 per cent, compared with the OECD average of 5.3 per cent.

Fiscally troubled Spain had the highest youth unemployment rate of 40.7 per cent in the 2010 September quarter – one of seven countries with more than a quarter of its youths out of work.

Switzerland had the lowest rate of about 7 per cent. Seven other nations had rates of 10 per cent or less.

In the middle of 2010, the average OECD youth unemployment rate reached a post-1945 high of 19 per cent.

The OECD forecasts it will hit an average of 20 per cent this year before declining.

More jobs for Canty students

Earthquake-related roles have seen more student jobs available in Canterbury this summer.

Student job listings in the region are up 30 per cent on last summer after a higher national trend and a boost stemming from the September 4 earthquake.

Student Job Search (SJS) chief executive Paul Kennedy said Canterbury had a high number of building and engineering vacancies for quake work.

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He said the Earthquake Commission was using the tertiary student employment agency to hire engineering graduates, as were construction and engineering firms.

Vacancies were up 25 per cent nationally compared with the 2009-10 summer, driven by jobs in information technology, engineering and medicine, he said.

Several Australian engineering and medicine firms were hiring Kiwi students for the season through SJS, Kennedy said.

The increase had been driven by the recovering economy and employers who were starting to recognise that students could be used for their brains as well as brawn, he said.

JOBS AVAILABLE

Jobs on the Student Job Search noticeboard include:

Urgent one-off, four-hour labouring job in New Brighton for a fit, strong student to clear rubbish. Pay: $15 an hour.

Two fit and reliable students required to act as builder's labourers for several days to help with site work, including taking down a chimney. Pay: $15 an hour.

An office administrator with experience in accounting and financial data entry is needed to complete general accounts and administration functions in an Avondale office. The full-time, permanent role pays $18 an hour.

A professional, organised and technically adept student is required for a two-week position completing a rollout of eftpos terminals to stores during their operating hours. Pay: $25 an hour.

- © Fairfax NZ News

127 comments
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Frank Macskasy   #127   11:40 pm Aug 14 2011

The last time youth unemployment was this high was in 1992.

1992?

Wasn't that the previous National government led by Jim Bolger, with Ruth Richardson as Minister of Finance? And didn't she implement a slash and burn economic policy in her "Mother of All Budgets" that resulted in unemployment reaching over 10%?!?!

Why, yes. It was.

Are we starting to see a pattern develop here, folks?

O.K.1   #126   01:11 am Jan 22 2011

Totally agree with Phill and Garbage #121. We really need to revisit some of the policies around our immigration laws for NZ. The party with the best solutions to our voes in this regard, will win the 2011 Election. Winston is right with his slogan NZFirst. As for our Kiwi youths, the competitive edge is just not there with Gen.Y. To think this party generation etc...will be running our country in the next 10 or so years (if they're not already). God help us all.

Ex-teacher   #125   10:00 pm Jan 20 2011

Hi, I'd like to offer my support to Glenn -frustrated parent of pothead, dole bludging, drinker child. Glenn you sound like a really onto-it guy and supportive person and parent and I think any critique of you or your parenting on this blog is unfounded based on what you've written.

As an ex-teacher I would like to confirm -and research supports this, that in the current society, there are increasingly powerful influences, namely electronic media being exerted on impressionable young people. In addition to this peer pressure is shown to be more powerful than parental influence during adolescence, which is those early and primary years are so essential for laying a strong foundation.

I can't imagine how hard it must be as a parent to see your kid not doing well. I have six degrees and diplomas and have worked -part and full-time for 17years yet my father deems me a failure who has messed up their life. Er.... don't quite get his logic there, yet you certainly sound like you've done everything in your power to assist your son ranging from helping to tough love. Now, how about doing nothing. Or -go a step further and do as some parents are forced to do, sell the family home, move towns or countries and more or less leave him to his own devices. As long as that safety net's there in some way he may feel entitled to fall back on it. I just wanted to say I think you sound like an amazing supportive parent and to take any criticisms of your parenting by others with a grain of salt.

Demelza   #124   04:02 pm Jan 10 2011

So if young people aren't getting jobs, and us older ones aren't (I'm in my 50s and have all but given up looking after far too many knockbacks,) then who is? According to a recent stuff.co article http://www.stuff.co.nz/national/4507890/Perfect-population-storm-on-horizon we have a gaping black hole where the 20-35 y/os should be, so who is taking all the jobs? That leaves a group of 36-50 y/os doing all the work, yeah right! Amazing what one can do with statistics isn't it . . . .

Howard   #123   02:06 pm Jan 10 2011

To Talltimber (#110) I suspect you have never travelled to a 2nd or 3rd world country otherwise you surely wouldn’t make the ridiculous claim that we live in a 2nd world country. The last unemployment figures for NZ was actually 6.4% (not 10% as you state) compared to the US 9.4%, UK 7.9% and Australia 5.2% NZ isn’t faring too badly. However given you are obviously one of our ‘best and brightest’ as evidenced by your illuminating analysis of the New Zealand economy. I am sure you will be promptly ushered into a high paying job upon arrival in Australia as opposed to adding to their 5.2% unemployment figures. Good luck in Australia mate.

Phil   #122   11:36 am Jan 10 2011

We could try reducing the number of work permits and residencies we give out to foreigners. That should help in eliminating the experienced candidates and forcing the employers to take that chance on someone inexperiences, as there would be no one else to choose from. It scares me how much that sounds exactly like Winston Peters' approach, heaven forbid!

Garbage   #121   11:22 pm Jan 08 2011

I think there are many reasons that contribute to this:

1) Summer time = no university = unengaged students = higher unemployment rate in youths.

2) Generation Y being less ambitious, less mature, more lazy, showing less social and personal responsibility, and less likely to seek employment because they may actually have to work for money.

3) Government and Universities trying to augment their finances via a "bums on seats" approach which attracts low-quality youths who are only interested in the social aspects of university and the student allowance and interest-free loans but not the main point of university which is to get an education.

4) The devaluation of education in our society - it is more cool to hang out with friends, listen to the latest music, get a tattoo/piercing, do drugs, drink, smoke, have babies, go to parties, hit the pubs/nightclubs, play on the Xbox/Wii/computer, join a gang than be "geeky", "nerdy", a "workaholic", a "tall poppy" and actually get somewhere in life.

5) The arrogant attitude that Kiwis take when it comes to low-paying, menial, labour-intensive, or repetitive jobs e.g. fruit-picking which means that recent immigrants with poor English skills and little local work experience as vastly more likely to be employed than native Kiwi youths.

6) Bad/permissive/neglectful parenting habits and accompanying social environments that encourage young people to do "whatever they like as long as they're happy" without examining the negative consequences associated when a bad choice is made.

7) Not enough emphasis at school on vocational subjects and life skills needed to succeed in the real world e.g. how to get a job, create a CV, money/time management, basic financial education, career guidance, staying in school longer etc.

8) Poor choice of subject in uni e.g "B whatever you wanna be eh (A)" degrees with majors with no real world employment potential. I mean, how many businesses would want to employ a student who had a major in Ancient Greek with a minor in Gender Studies?

9) Lack of cultural emphasis on education (point 4), success, career choice, ambition, and wealth creation in NZ. That is why a large percentage of students in the professional courses in University such as Dentistry, Medicine, Pharmacy, Engineering are of Asian/Indian/other ethnic descent where Pakeha students dominate the Arts courses, the latter of which is related to point 8.

10) Government policies around the dole and other forms of benefit that provide too much of an incentive for disaffected and vulnerable youth to get hooked on and see this as a viable alternative to actually getting a real job and becoming a productive member of society.

There are many other reasons but these should provide some food for thought.

Barry Howe.   #120   08:03 am Jan 08 2011

Welcome to the real N.Z. the land of appalling wages & substandard working conditions. We have the lowest wages & conditions in the Western world. It will never change until People get off their chuff & do something about it. No wonder anyone of any intelligence is fleeing overseas, as there is nothing here.So there you go Folks, if you want a decent living, go to Australia. All the money & perks here go to the oligarchy. Barry.

v   #119   08:39 pm Jan 07 2011

@#112 Lauz. Your right. I know men aged older then 24 that find it difficult to organise themselves and put in a decent weeks work. You give them simple instructions and they can't even follow them. A third form student could do a better job than them, yet they are not embarassed by this?

And get this ... the Boss doesn't give a damn either. He's just as bloody lazy and incompetant, but has still managed to keep his job.

Charlie   #118   07:03 pm Jan 07 2011

Bill+ #116 04:14 pm Jan 07 2011 and yet we are short of workers to work in manual labour in the orchards of the south island - what should we do?, i wonder.............

Temper your greed and pay wages that will attract labour - what else.


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