Who are the nearly 42,000 people who have become Jobseeker Support recipients since COVID hit?

More young, white, middle-class people become beneficiaries, as 2,422 more people received Jobseeker Support last week

15th May 20, 5:06pm by Jenée Tibshraeny

Image sourced from pxhere.

The rate at which people are going on Jobseeker Support has slowed in recent weeks, following a spike in late-March/early-April.

A net 2,422 people went on Jobseeker Support in the week to May 8, according to the latest Ministry of Social Development data.

So as at the end of last week, there were 186,826 people on Jobseeker Support.

The number of new people to go on Jobseeker Support in a week peaked at 9,470 in the week to April 3.

This could in part be because an influx of New Zealanders returned home from overseas before the borders were shut.

Despite the slowdown, COVID-19 has seen a net 41,820 people go on Jobseeker Support. In other words, the number of people on Jobseeker Support increased by 41,820 in the seven weeks to May 8.

The 12-week wage subsidy is undoubtably playing a huge role keeping people employed. It’s paid $11 billion to support 1.6 million jobs and will be extended by eight weeks for businesses whose revenues are down 50% from last year (as opposed to 30% as was the requirement under the initial 12-week scheme).

More young, white, middle class require Jobseeker Support

Ministry of Social Development data shows that of the new people who have gone on Jobseeker Support since the lockdown, 45% were in their 20s. During the same period last year, 37% of new recipients were in their 20s.

Some of these young people would’ve been returning to New Zealand from overseas. The portion of new beneficiaries during lockdown who were overseas returnees was 12% (versus 5% last year).

45% of new Jobseeker Support recipients required it because they “ceased work”, while 22% said they had become “available for work”.

Compared to the same period in 2019, a larger portion of the new Jobseeker Support recipients previously had higher incomes.

A fifth previously earned between $585 and $880 a week, and a fifth earned more than $881 a week. Only 8% earned more than $1,201 a week.

Furthermore, 46% had little or no previous benefit history, compared to 26% last year.

And 65% were NZ European, “other”, or from unspecified ethnic groups, compared to 48% last year.

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48 Comments

by Rosenstein | 15th May 20, 5:38pm 1589521089

There was also the small matter of the minimum wage increase

by b21 | 15th May 20, 9:16pm 1589534190

Multimillionaire or Stockholm syndrome?

by GV 27 | 15th May 20, 5:39pm 1589521152

"Returned to NZ" and hopped on the dole.

by youngdumbandfullofit | 15th May 20, 5:48pm 1589521712

Here's hoping they will stay and provide their skills to the homeland.

by Ralph | 15th May 20, 5:51pm 1589521862

What else could they do, businesses were closed?

by GV 27 | 15th May 20, 5:58pm 1589522282

I would be more charitable if we were able to feed and house the NZers who actually live here, pay taxes here and send their kids to school here, but we can't even manage that at the best of times.

The idea that you can live the life of Riley on the other side of the world and not contribute to the state until you suddenly decide you need something from it doesn't really work when you have so many people living outside the country who have a right of return at the drop of a hat. A stand-down period would not be unreasonable.

by GV 27 | 15th May 20, 6:02pm 1589522521

In fact in typing this out I've come to the realisation that we have minimum work periods for things like Super and there probably is such a stand-down period and I just don't know it exists, so feel free to ignore me as 'likely wrong dude on the internet' - stick with what you know I guess.

by Ralph | 15th May 20, 6:05pm 1589522731

A stand down is certainly viable and there is fairness argument there.

Although if we were to accept the premise that the reason welfare is broken is crap government the fairness argument turns a bit the other way, as in, why take out government failures on kids coming home in circumstances beyond their control?

by GV 27 | 15th May 20, 6:46pm 1589525213

It's a compelling argument, that kids shouldn't miss out. But you could use that to justify almost anything. What I want to know is why the kids of parents who live and work in NZ should get less because people who essentially use NZ as a passport office decide they suddenly need the safety net that people actually living here have funded. I'd rather we were more selective about who got benefits and gave them a humane amount to live off than leaving the welcome mat out for people who want to swan back whenever they please at our expense.

by Speechless | 15th May 20, 6:45pm 1589525157

Are you seriously suggesting NZ citizens shouldn't be allowed to come back to NZ and enjoy the same rights as any other NZ citizen? Do you understand the basic concept of citizenship?

If you make NZ unlivable for young people young people go overseas, it's not rocket surgery.

by GV 27 | 15th May 20, 7:03pm 1589526203

Well we already discriminate on this basis when it comes to super eligibility and returning to NZ. So we accept this as a pragmatic solution at times. Other countries take a far harsher stance on tax residency and expect contributions to maintain your citizenship. And we have a large cohort of overseas NZers who rightly have a right of return. How do you justify Kiwis who live and pay tax here supporting Kiwis who opted not to live and pay tax here?

by GV 27 | 15th May 20, 7:05pm 1589526353

I'm not questioning the right of return, I'm questioning why we let people who chose not bring a plate to a bring-a-plate function line up with the people who did as soon as their feet hit the tarmac.

by frazz | 16th May 20, 8:46am 1589575578

They moved away to get a job that paid enough to pay off their student loan, start a family, and buy a house...impossible in NZ.

by redcows1 | 16th May 20, 8:59am 1589576385

Absolute bull. All my kids have stayed in NZ. All paid of student loans. All either have, or deliberately choose not to but could, bought a house by age 30. With no direct help from parents.

by Shrek | 17th May 20, 6:46am 1589654807

The baby boomer generation, which I am one of in most cases do not appreciate just how good we have had it.
Free Education, affordable housing and higher wages in real terms.
Time to cut some slack for younger people trying to navigate their way through life.

by Homer | 15th May 20, 6:40pm 1589524813

That’s right Ralph. It’s like the illegal gun ‘buy back’. The money paid by the Crown was because they effectively seized lawfully held private property. It was ‘compensation’. The wage subsidy or dole or whatever is similar as the Crown has arbitrarily closed the economy, depriving people of their lawful right to work and trade.

by frazz | 16th May 20, 8:47am 1589575671

Boo hoo.. give me back my semi auto ...and I'm keeping the money you gave me too!

by PocketAces | 16th May 20, 9:27am 1589578060

And die in a pandemic.

by CN | 16th May 20, 8:27pm 1589617671

""Returned to NZ" and hopped on the dole."

According to the property price optimists, the Kiwis returning to NZ were the potential buyers of property in NZ. If returning Kiwis are on financial support from the government, it seems unlikely that they will be potential house buyers.

by Ralph | 15th May 20, 5:49pm 1589521764

So with the subsidy we have 41,820 people in 35 working days for an average of 1194 people a day.

I guess we won't know how many jobs it is propping up until it stops, but I am thinking those firms with some kind of market clarity are already resizing so that might be flattening the curve.

I certainly hope so anyway.

by GV 27 | 15th May 20, 5:51pm 1589521893

Ugh sorry Ralph, accidentally clicked on report on this and I can't seem to undo it. Someone take this button away from me, this is like the third time.

by Ralph | 15th May 20, 6:01pm 1589522482

Ah well, mistakes happen. Have a great weekend.

by Nzdan | 15th May 20, 10:39pm 1589539148

It's not a big deal though. Let's apply some Covid-19 statistical logic to those numbers:

41,820 = 0.8% of the population.

by Ahuhyeah | 15th May 20, 11:42pm 1589542923

Another angle for you. 41,820 x $250 = $10,000,000 a week or $520,000,000 a year (touch of rounding). Double that by year end or triple. What's your best guess?

Have a be a billion a year by year end I'd think.

Mind you we could save that if we all quick smart shifted to kiwibank....

by Nzdan | 16th May 20, 12:05am 1589544323

Very good point. I'm curious to see what our resident property spruikers have to say about these numbers you've put forward though...they're experts in historic extrapolation techniques.

by KH | 15th May 20, 5:58pm 1589522339

Watch as these numbers get bad, and then the numbers will be rearranged in ways so you can't compare and make sense. This is a government with communication skills, but those are not in our interest.
But they will be looking good.

by Ralph | 15th May 20, 6:06pm 1589522803

So you are predicting lipstick on the pig then?

by donny11 | 15th May 20, 10:46pm 1589539594

Yup expect some methodological changes to the way unemployment is calculated. While they are at it I am sure they will tinker with the CPI basket of goods for good measure. Don't want people to find out money printing causes inflation.

by Nzdan | 16th May 20, 12:06am 1589544402

Haven't the numbers already been manipulated enough over the past 10 - 12 years?

by Ben72 | 15th May 20, 5:57pm 1589522237

ANZ’s Sharon says unemployment figures remains for longer than government expectation.

https://www.rnz.co.nz/news/business/416735/anz-predicting-higher-unempl…

by Fritz | 15th May 20, 6:11pm 1589523092

Well duh
Govt's projections are just pathetic wishful thinking.
How this stuff gets out of the so-called 'experts' in the agencies is beyond belief....

by Fritz | 15th May 20, 6:12pm 1589523120

by Newbie | 15th May 20, 6:12pm 1589523145

This is the figure without considering the number of working hours reduced for employees.

by Averageman | 15th May 20, 6:22pm 1589523751

At least it's a global issue, so they cannot bugger off to the UK or Aussie.

by oldbloke1 | 15th May 20, 6:26pm 1589523988

Should be interesting - perhaps less stereotyping of beneficiaries as lazy good for nothings, especially if a good proportion of the middle class end up on benefits or make work schemes. What will national do for dog whistles?

by TommyYank-old | 15th May 20, 6:40pm 1589524830

NZ Job Seeker Benefit appears to me to significantly under count the unemployed in this type of situation. Couldn't figure out why the NZ rate was so low. Then talking to my barber found out why. He is working and therefore his wife can not get a benefit.
She is out of work--but statistically missing.
US system quite different. People are not on the dole. Their employers (or they if self employed) pay into an separate Unemployment Insurance Fund each qtr. Takes from 1% to 8% out of paycheck to fund the insurance fund.-up to a maximum annual limit per employee. More layoffs an employer has the higher the premium. Its self funded so everyone laid off is eligible for INSURANCE payment. That's what this event is so hard on GIG workers who have been skating without paying all their payroll contributions--unemployment, social security, private hospital ins, pension contribution, etc. 30 Million in the US and many not eligible.

by Fritz | 15th May 20, 6:51pm 1589525506

Kiwis returning jobless from overseas is one of the elephants in the room in terms of unemployment.
Things are bad enough with people based here losing their jobs, let alone the kiwi diaspora returning en masse to the dole.
Another thing that has been alluded to elsewhere is people losing their jobs but being ineligible to get the dole, because their partners are earning too much. This will of course not register in the dole numbers, but will have significant economic / social impacts.

by FCM | 16th May 20, 8:44am 1589575453

Agree. If you returned. From oe should be 12 week stand down, you should budget that when deciding to roam the world. Yes those who are not on job seeker because of partners will be fairly large number given small threshold. It's the mental side and sense of self worth that will really affect people who are used to working

by Shrek | 17th May 20, 6:52am 1589655173

Jobseeker is asset tested! Any assets over and above the threshold must be used prior to any payments being received.

by Pietro | 15th May 20, 7:30pm 1589527853

Wonder how many have come back from the UK? This is food for thought and shows how prevalent the disease has been there.

https://www.telegraph.co.uk/news/2020/05/14/public-health-englands-late…

by Carlos67 | 15th May 20, 8:07pm 1589530041

Also how do you factor in things like reduced hours and 20% pay cuts ? Effectively thats another 1 in 5 out of work. As already pointed out as soon as your partner is still working you are not eligible for the job seeker benefit. Clearly the actual unemployment is far higher than any official figures indicate. Reality is in terms of actual financial impact we are going to have 20% unemployment in no time.

by Pragmatist | 15th May 20, 8:58pm 1589533117

Just look at IRDs PAYE receipts. The effect of lower effective tax rate on reduced income somewhat reflects lower discretionary income.

by donny11 | 15th May 20, 10:51pm 1589539879

Agreed,employees at my company have been doing 45-50 hours a week for the last 5 years. We are now on 40 without exception.

by Camel's back | 15th May 20, 9:27pm 1589534824

Liking being informed.. big ups Jenée, indeed essential... We shall see how the figures are when the subsidies subside. Every job needs earnings.
EDIT... Unless you are paid by the government or council...

by Just a farmer | 15th May 20, 10:10pm 1589537421

Hopefully this is a helpful push towards a higher wage economy when you see that there are still thousands of trade, roading and construction and healthcare jobs listed on Trade Me. Hopefully the trades training scheme is helpful for the redundant tourism and hospitality staff.

by donny11 | 15th May 20, 10:58pm 1589540335

Construction won't be picking up the slack. I promise you that. Most companies are not hiring at the moment. Some companies are asking employees to take salary sacrifices. Some companies will be making redundancies when the 12 week wage subsidy expires. Jobs are being canceled & pulled all over the place it's a fearful market.

by PocketAces | 16th May 20, 8:35am 1589574952

After we have housing sorted for who is already here, that will be it, the ponzi scheme of mass immigration will stop, just as tourism has, travel will cease to be a thing for any but the wealthiest for some time, we may never see cheap flight again, that is probably not a bad thing in the long run. We will have to adapt

by Solve_it | 16th May 20, 9:19am 1589577566

Just looked at flights to Rarotonga and Fiji from July onwards with AirNZ (a girl can dream). Going cheap cheap