Friday, November 14, 2008

Treasury forecasts bode ill for welfare bill

Media Release
Thursday, November 13, 2008

A Treasury report released today forecasts unemployment rising to 5.7 percent by 2010.

Commenting on this prediction, welfare commentator Lindsay Mitchell said, "To put that number into perspective, last time unemployment was at that level, in September 2000, 135,000 people were claiming the unemployment benefit - 112,000 more than today."

"Bear in mind too, that 5.7 percent of today's labour force represents more people than it did in 2000."

"Additionally, whenever unemployment rises so do numbers on other benefits, particularly the Domestic Purposes Benefit. During two previous periods of rapid unemployment growth - 1980 to 1983 and 1985 to 1988, DPB numbers climbed by 30 and 32 percent respectively."

"This is a time when it is crucial that government ensures that the numbers of people resorting to welfare for reasons other than unemployment are contained. For example, a stand-down period for the DPB would discourage families from splitting in order to claim two benefits instead of one."


Adolf Fiinkensein said...

Before we all rush out and cut our throats, it might be an idea to remember this report was not meant for public consumption and was floated by a derelict and decrepit failure of a finance minister in order to scare up a storm amongst excitable commentators, so as to damage the incoming administration..

Lindsay Mitchell said...

My advice remains the same, 'excitable' or otherwise - to a Labour government or National.