Media release
9 October 2012
Starting-out wage will benefit NZ economy, communities
A starting-out wage will help get more young people into jobs, says BusinessNZ.
Chief Executive Phil O’Reilly says having to pay unskilled teenagers at adult rates makes it hard for many young people
to get a job.
“Not being able to get that initial job prevents many young people from gaining workplace skills, further reducing their
future employment chances.
“A starting-out wage at 80 per cent of the minimum wage for the first six months’ employment will make it easier to
employ a young person so they can gain those vital workplace skills.”
Mr O’Reilly said the policy announced today would particularly benefit teenagers who were vulnerable to being trapped on
a benefit through being unable to compete effectively for a first job.
Costings indicate that with accommodation and other applicable subsidies unaffected, a teenager on a starting-out wage
would earn more than if on a benefit.
“Getting more young people into jobs - especially including those currently on a benefit – will benefit the economy and
communities all through New Zealand,” Mr O’Reilly said.