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Home / Rotorua Daily Post

2018 growth in Jobseekers beneficiaries slower in Rotorua than nationally

Samantha Olley
By Samantha Olley
Rotorua Daily Post·
29 Mar, 2019 10:30 PM4 mins to read

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Ministry of Social Development regional commissioner Mike Bryant. Photo / File

Ministry of Social Development regional commissioner Mike Bryant. Photo / File

The number of people on Jobseeker Support benefits in Rotorua increased in the last three months of 2018 but at a much slower rate than it did nationally.

Ministry of Social Development data in Rotorua's Quarterly Economic Monitor from Infometrics shows that although the number of recipients increased by 1.9 per cent, from 3365 to 3428, nationally, it increased by 4.8 per cent, from 120,487 to 126,240.

Traditionally, Rotorua has had a much higher ratio of Jobseekers recipients than the national average; 7.6 per cent in the year to December 2018 compared to 4.0 per cent nationally.

Rotorua Chamber of Commerce chief executive Bryce Heard was not surprised Rotorua was coming in line with the rest of New Zealand.

Rotorua Chamber of Commerce chief executive Bryce Heard. Photo / File
Rotorua Chamber of Commerce chief executive Bryce Heard. Photo / File
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"Anecdotally I haven't heard as many members saying that they are struggling to get good staff recently... We are working in this space with the CadetMax programme to have local demands match with school leavers."

Mike Bryant, the ministry's regional commissioner in the Bay of Plenty, said the slight increase in the number of Jobseekers recipients in Rotorua came down to ongoing population growth, people moving off other benefits, an employment slowdown in construction and manufacturing, and pressure on the city's housing supply.

"Getting and keeping sustainable employment is more challenging for people without a permanent place to live."

Minister for Social Development, Carmel Sepuloni, with regional commissioner Mike Bryant. Photo / File
Minister for Social Development, Carmel Sepuloni, with regional commissioner Mike Bryant. Photo / File

He said companies in construction, engineering, horticulture, retail and hospitality partnered with the ministry to prepare people for work.

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The ministry's training programmes include Work Ready, the Employment Placement Service, Training for Work and Journey to Wellness helping with CVs, interviews, driver licences, numeracy and literacy, retail and hospitality skills, health care and aged care skills, trades skills and supporting clients with mental health conditions and disabilities.

It also offers help with things like the cost of transport to and from work.

Rotorua Economic Development's executive manager for investment, growth and intelligence, Rebecca Wright, said Rotorua was doing well to take a "joined-up" approach to job seekers.

The executive manager of investment, growth and intelligence at Rotorua Economic Development Limited, Rebecca Wright. Photo / File
The executive manager of investment, growth and intelligence at Rotorua Economic Development Limited, Rebecca Wright. Photo / File

"Rotorua Economic Development's role in this process is to create opportunities to bring employers, educators, and recruiters together."

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Rotorua mayor Steve Chadwick said the data was heartening but "we're still hearing from employers that there are jobs but not always the people with the skills needed".

Rotorua mayor Steve Chadwick. Photo / File
Rotorua mayor Steve Chadwick. Photo / File

Rotorua Citizens Advice Bureau manager Jane Eynon-Richards said the bureau mainly helped with CV writing.

Rotorua Citizens Advice Bureau manager Jane Eynon-Richards. Photo / File
Rotorua Citizens Advice Bureau manager Jane Eynon-Richards. Photo / File

"We also have a computer here that job seekers can use to search for work."

The minimum wage increases by $1.20 to $17.70 an hour this coming Monday.

The Infometrics report said the increase would provide some support to those already in employment, "but could put pressure on staffing numbers".

Our MPs' opinions

Rotorua National Party MP Todd McClay. Photo / File
Rotorua National Party MP Todd McClay. Photo / File

Rotorua MP Todd McClay

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If someone can work but is not willing to, then the taxpayer is justified in asking why.

It remains a big concern that Rotorua's unemployment rate is almost double that of the rest of the country and is increasing.

I'm worried that a fast increase in the minimum wage could mean those with the least skills and fewest employment options find it harder to stay in the workforce.

Waiariki Labour Party MP Tamati Coffey. Photo / File
Waiariki Labour Party MP Tamati Coffey. Photo / File

Waiariki MP Tāmati Coffey

Rangatahi Māori have been over-represented in this space for too long.

I believe that often goes hand-in-hand with reconnecting with your marae and knowing where you come from before you step forward.

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Increasing the minimum wage and ending secondary tax from April 1, as well as launching the new forestrycareers.nz to help guide Kiwis into diverse careers that support the growth of one of our key industries, are just three of the measures this Government is using.

New Zealand First MP Fletcher Tabuteau. Photo / File
New Zealand First MP Fletcher Tabuteau. Photo / File

Rotorua List MP Fletcher Tabuteau

For too long unemployment and jobseeker numbers have been too high in Rotorua which is exactly why local projects are being enabled and accelerated with the Provincial Growth Fund.

Having a higher minimum wage will make it more attractive to work so it is likely we will see a decline in job seekers.

From New Zealand's own experience, we know that an increase in the minimum wage leads to an increase in consumption.

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