MSD puts NZ$55 mln towards youth jobs schemes; Reprioritises NZ$30 mln from current budget, NZ$25 mln new spending

The Ministry of Social Development will reprioritise NZ$30 million of spending for two targeted youth jobs schemes, while receiving an extra NZ$25 million to put toward a current Defence Force "confidence building" scheme for 18 to 24 year olds.

Minister for Social Development Paula Bennett made the announcement alongside Prime Minister John Key this morning at the Trentham Military Camp in Wellington.

A further announcement is due next week on a targeted government progamme to deal with a looming skills shortage in Canterbury, following the two devastating earthquakes that hit the region, Key said.

See the release from Bennett and Key:

The Government is investing $55.2 million to get young people into jobs, Social Development and Employment Minister Paula Bennett says.

The investment over four years will see more young people employed with work and training subsidies and through Limited Service Volunteers.

“Young New Zealanders were hit hard by the recession, with many squeezed out of the tight job market,” she says.

“We supported them with Job Ops and Community Max and training programmes and we’re now going even further. We’ve designed a package to subsidise employers who agree to train a young person and give them a permanent job.”

The Youth Employment Package, has three components: Skills for Growth, Job Ops with Training, and the Limited Service Volunteer programme.

“These initiatives will provide skills and training for young people so they’re work-ready for good, solid jobs,” Ms Bennett says.

Skills for Growth provides a subsidy for employers to employ and train young people in high demand industries (eg aged care, horticulture and agriculture).

Around 1,000 youths a year will benefit from a good job and industry-specific qualifications through Skills for Growth, costing $17.2 million over four years.

“We’re targeting industries with strong demand for skilled workers, giving young people a real chance of getting into a career.”

Employers get a $5,000 subsidy for training and in-work support to help the young person achieve a recognised industry qualification to NZQF Level Two.

The subsidy is paid in stages:

$1,000 when the employer provides Work and Income with a training plan and confirmed job offer.

$3,000 after the young person has been in employment and training for three months.

$1,000 after a year – if the young person has achieved a qualification, been in the job for a year or is still in training.

Job Ops with Training is a refocused version of Job Ops, which incorporates training in the subsidy for employers, costing $13 million in 2011/12.

Since its introduction in 2009/10, Job Ops has helped more than 10,000 young people get work.

Research shows 90 percent of young people who completed a Job Ops placement, are not on a benefit.

Job Ops with Training will:

Provide a flexible subsidy of $5,000 to employers that can be used for both wages and training.

Require the employer to develop a training plan that results in skill development for the young person.

“Job Ops has been successful for both young people and employers. We believe this takes it a step further by providing training on top of a job.”

Limited Service Volunteers

“This Government has listened to young people who say the LSV programme changed their lives and we’re putting more money into it,” says Ms Bennett.

An extra $25 million over four years will give 1,500 young people a year the LSV experience.

LSV is targeted to young people who’ve been on benefit for longer than six months and who lack the confidence to find work.

The six week residential confidence building programme for 18-24 year olds is run by the NZ Defence Force at Burnham, Trentham and Hobsonville.

“This Government is backing young people to gain skills and the confidence that gets them real jobs in go ahead industries,” Ms Bennett says.