Luxon in negotiations in India and doubts about the Government's ability to get unemployment under control. Video / NZ Herald, Sky News
There are nearly 22,000 more people receiving the Jobseeker benefit than a year ago.
Labour criticised the Government’s efforts, calling them ineffective and punishing to beneficiaries.
Minister Louise Upston highlighted positive signs, with over 6400 people finding work last month.
Nearly 22,000 more Kiwis are receiving the Jobseeker benefit than a year ago – a jump of almost 12% in 12 months.
The number of additional people on the dole is roughly equivalent to the entire estimated population of towns like Levin or Ashburton.
The number of additional jobseekers is the same as the estimated population of Levin. Photo / NZME
Labour says the increase demonstrates the Government’s actions to reduce the number of people receiving the benefit have been ineffective. The Government says it was expected the numbers “were going to get worse before they got better”.
New data from the Ministry of Social Development (MSD) show there were 210,456 people on the the Jobseeker benefit in February, 11.5% more than in February 2024 when there were 188,679 Kiwis getting that assistance.
Of the 210,456 receiving the Jobseeker benefit last month, 119,655 were receiving the “Work Ready” payment and 90,798 were receiving the health condition and disability payment.
On a monthly basis, the total number of people receiving Jobseeker, both Work Ready and health condition and disability, reduced by -1.3% compared to January 2025.
“The number of people on Jobseeker has kept going upwards on National’s watch. Not only is this Government ineffective, but it is also cruel and punishing to people who are suffering because of this Government’s harsher sanctions on benefits,” Jackson said.
Labour’s social development spokesman Willie Jackson. Photo / Mark Mitchell
Last year, the Government introduced a new social welfare “traffic light” scheme and a requirement for beneficiaries to meet with the ministry at a seminar six months after receiving the payment to discuss their job search.
It’s also in the process of adding new sanctions for Jobseeker support recipients, including attending a training course and completing at least three job search activities each week. These are part of legislation currently before Parliament.
Social Development and Employment Minister Louise Upston said the Government knew when it set its target of 50,000 fewer people on Jobseeker over six years that the numbers would get worse before they got better.
“We’re already seeing positive signs as a result of the work we are doing, the latest monthly stats show more than 6400 people cancelling their Jobseeker benefit because they found work, which is nearly 1000 more than in January,” Upston said.
“We are working really hard to make sure every Kiwi has the opportunity to get into work, to get themselves ahead and create a really bright future.”
Social Development and Employment Minister Louise Upston. Photo / Paul Rickard
Victoria University of Wellington professor of public policy Jonathan Boston said it would have been “very surprising”, given the very flat economy last year, if the number of those on Jobseeker support had decreased.
“There is an issue here of what is the counter-factual. Had the Government not been somewhat more vigorous to get people back into the labour market, would that number have gone up even more? It certainly could have done.
“It is interesting the number of people facing penalties has dramatically increased.”
However, Boston said he did not think the actions the Government was taking to reduce the number of people receiving welfare benefits would have a significant impact.
“My personal view is I would expect any impact to be relatively modest so we’re talking thousands rather than tens of thousands. The main issue is going to be what is the state of the economy over the next 12 months.
“If the economy remains relatively flat, if there is a global economic downturn then we will be affected by that and in 12 months' time, it may well be that overall benefit numbers will be up, possibly quite significantly, in particularly, Jobseeker support.”
Boston said New Zealand was moving into a period of “increased unpredictability and uncertainty”.
“In that context, the capacity of the Government to influence things is going to be reduced because there are so many exogenous factors if not exogenous shocks affecting the global economy.”
*This story has been amended to clarify that new non-financial benefit sanctions for Jobseeker support recipients were not introduced last year. They were announced last year and legislation to enact them is currently before Parliament.
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.
