Starting-out wage will benefit NZ economy, communities

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.

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