Monday, September 19, 2022

Lindsay Mitchell: Likelihood of getting off a benefit decreasing

The longer people are on a benefit, the harder it is to get off it.

The following graph illustrates that. Someone who has been benefit-dependent for 1-6 months has a much higher likelihood of leaving for employment than someone with a duration of a year or more. Although the graph was released this month (September 2022) it only contains data to June 2020 unfortunately:

Click to view

Two concerns.

In each of the years shown, the likelihood of leaving a benefit for employment has decreased.

Compounding that, in June 2017, 74% of all beneficiaries (203,772) had been on a benefit for more than a year. This grew to 75% in June 2022 (257,490).

For Jobseeker beneficiaries the respective percentages climbed from 57% (67,479) to 61% (104,985).

Most disturbing is this growing dependency is happening against a backdrop of employers across the board crying out for workers.

This scenario seals it. The welfare system has morphed well beyond a last-resort, safety net.

Lindsay Mitchell is a welfare commentator who blogs HERE.


Robert Arthur said...

For anyone who has been shown through the new state units now being supplied there is doubtless a correlation with contentment on the benefit and not desirng work. There is every incentive to stay on it (ie by having more tamariki). The effort required for any significant lift in lifestyle is so great not worth striving for (unless cursed with colonialist inherited ambition)

Mudbayripper said...

New Zealands social security system on its inception was designed for those unfortunates who found themselves in a no win situation. Even though it is in fact a socialist concept.
It had merit for all. After all anyone of us could easly find ourselves in need.
The difference between then and now.
Most working class people had integrity, it was considered shameful to be on the take from your fellows.
Today the concept of shame and integrity has vanished from modern society. In fact an ever expanding section of that society are being encouraged to take and steal.