Tuesday, March 06, 2012

Where are the jobs?

Last week I did a guest stint on the Radio New Zealand Jim Mora panel with Findlay McDonald and Gary McCormick. They were both objecting to the DPB reforms on the basis of, where are the jobs? I made comments along the following lines (without the pictures!)

When the demographic change New Zealand is facing is taken into account, it is clear that labour force is going to shrink in relation to the non-labour force. 

The graph below shows that the ratio of the combined 0-14 and 65+ populations is going to grow from around 0.5/1 today to 0.7/1 over the next twenty years. The demand for goods and services continues from the non-working population thus increasing demand on the working-age population. Hence it is so important for the government to set in place the legislation that requires beneficiaries to work when jobs are available.

Source: Facing Fiscal Futures

Although it has grown, New Zealand still has one of the lowest rates of single parent employment in the OECD. This is, at least in part, a reflection of New Zealand’s historically
open-ended and relatively generous DPB.

Sole parent employment rates across the OECD, around 2007

Source: OECD family database (www.oecd.org/els/social/family/database)

So there is ample evidence jobs will be there, particularly in the care and health sectors, and ample economic imperative for more sole mothers to participate in the workforce.

However, to my mind, an even more important aspect of increasing their participation is the positive benefit for their children. Breaking the inter-generational cycle of welfare dependence won’t happen until children live with at least one working parent who is building their own expectations of a similar life.


Anonymous said...

Where are the jobs?

With 50BILLION flushed down the drain on welfare, and a ruinous "minimum" wage at $13.50 there's no surprise there are no jobs.

Remove welfare, save that 50 BILLION to pay off debts, and drop the minimum wage to zero and you'll have more than enough jobs, overnight

Anonymous said...

This country would be a whole different place had the DBP never been enabled here.
There would be far less child abuse, far more adoptions and many many wanted children with hard working parents.
Politicians never forsee the unwanted outcomes of the idealogy that they endlessy cling to.
Consequences without truth.

Anonymous said...

This country would be a whole different place had the DBP never been enabled here.

The country will be a whole different place again
when the DBP - and all the other $50 BILLION -

are cancelled!

Anonymous said...

Before the DPB people stayed in violent and otherwise unacceptable marriages and de facto relationships for economic reasons.People still do.
Yes the DPB has helped other unhealthy habits, attitudes and ways of life to evolve.

Lindsay Mitchell said...

Anon, Agree with you on all counts.