Youth Minimum Wage Bill Drawn From Ballot

The drawing of my Minimum Wage (Mitigation Of Youth Unemployment) Amendment Bill today is a step toward mitigating the high rate of youth unemployment, which has soared since Labour abolished the youth minimum wage in 2008, ACT New Zealand MP Sir Roger Douglas said today.

"Prohibiting employers from paying, for example, $10 per hour to young people often forces those young people onto the Independent Youth or Unemployment Benefits. The hourly rate on those benefits is around $3-$4 – why would we force our young people to accept $120 a week when they could be earning $400?" Sir Roger said.

"Only a ‘caring’ Labour Party politician would tell young people they’re better off being dependent on the state with $120 a week than self sufficient on $400 a week.

"Since youth rates were abolished, youth unemployment for 15-19 year-olds has almost doubled. Our young people have been priced out of the market – they can’t get jobs or work experience, and cannot contribute to our economy. What effect is this having on them?

"While the recession is also impacting on youth unemployment, this alone cannot explain the surge. More than 75 percent of economists agree that high minimum wages result in job losses – with those hit hardest being young and unskilled workers. After all, as an employer who would you pick if the cost were the same: a young person with no skills or an older person with experience?

"My Bill will give the Government the capability to set different rates for youth workers. It will ensure that young people do not have to compete against more experienced and skilled workers at an equal wage for the same job, providing them with more job opportunities," Sir Roger said.

ENDS

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