Govt Shifts Focus to Jobseeker Beneficiaries with Strategy to Cut Long-Term Welfare

In a major pivot aimed at reducing long-term benefit dependency and boosting employment rates, the New Zealand Government has unveiled a renewed employment investment strategy through the Ministry of Social Development (MSD), with a strong emphasis on supporting Jobseeker beneficiaries, especially young people.

Minister for Social Development and Employment Louise Upston welcomed the strategy, which will guide MSD’s employment focus until June 2028, describing it as “overdue” and necessary to redirect resources toward people with the most to gain—and the most to lose—if left unsupported.

“Prioritising beneficiaries into jobs should always be the employment focus for MSD,” said Minister Upston. “Unfortunately, that hasn’t always been the case. This updated strategy makes it crystal clear MSD needs to be consistently focused on the jobseekers already on benefits and getting them sorted first.”

Youth on Jobseeker Support a Key Concern

A particularly urgent priority within the updated strategy is the growing number of young New Zealanders under 25 receiving Jobseeker Support. Forecasts now show these young people are projected to spend an average of 18 or more years on a benefit across their lifetimes—49% longer than in 2017.

Calling this a “human tragedy,” Minister Upston stressed that youth employment must be central to the Government’s social investment agenda.

“Young people are one of New Zealand’s most powerful assets. We must help them transition into meaningful first jobs early—before long-term dependency takes hold,” she said.

Targeted Case Management and Practical Employment Help

At the heart of the strategy is a renewed focus on employment case management, which Minister Upston believes is where MSD can make the most immediate impact.

“Frontline MSD staff work hard, and this strategy backs that hands-on, practical support,” she said. “Sometimes it’s as simple as updating a CV or helping someone pass their driver’s licence test. It’s about practical tools that remove the barriers to employment.”

To support this, the 2025 Budget includes funding to retain 490 frontline staff, ensuring MSD can continue delivering intensive support to jobseekers, especially those facing complex challenges.

Innovative Youth Support Initiatives Already Underway

The strategy builds on several initiatives already launched in this parliamentary term to tackle youth unemployment:

• A phone-based employment case management service now supports 6,000 clients aged 18–24, providing ongoing guidance and accountability.

• 2,100 new places have been added for young people to access community-based job coaching programmes.

• Regular work seminars and a traffic light system have been introduced to track young clients' engagement with job search obligations.

• Regional employment events have begun across the country, connecting jobseekers with employers, providers, and community partners in a real-world setting.

Minister Upston herself is attending these events, where she hears directly from participants and employers about what works—and what needs improving.

A Broader Vision: Growing Jobs, Businesses, and the Economy

The employment strategy is a key pillar in the Government’s wider vision of driving economic growth, increasing productivity, and reducing intergenerational welfare dependency.

“Our Government is determined to get Kiwis into jobs, grow New Zealand businesses, and grow the economy,” Upston stated. “By focusing our employment services on where they can make the biggest difference—starting with our jobseekers and young people—we are investing in people’s potential and building a stronger future for everyone.”

Looking Ahead: Strategy Implementation and Results

MSD will now begin rolling out the strategy across its national service network, with performance monitored closely to ensure progress on key goals. Future updates may also incorporate digital innovation, enhanced employer engagement, and closer partnerships with the private sector and training providers.

Minister Upston emphasised the importance of accountability and outcomes: “We must ensure that our employment services are not only compassionate, but effective. Every young person moved into work is a life changed—and a cost saved for future generations.”