More targeted investment into training and helping young people into jobs has been welcomed by BusinessNZ.

A pre-Budget announcement of funding to tackle youth unemployment – focused on industries with a strong demand for skilled workers – recognises the issues raised by employers, says BusinessNZ Chief Executive Phil O’Reilly.

“There are two sides to the problem – lack of skilled workers in some industries, and a number of young people lacking work skills. We need to find a way to put these parts of the jigsaw together.

“Focusing on industries where there are skill shortages and helping young people achieve industry qualifications relevant to those industries is a good way to put the pieces together.

“Flexible funding to assist employers to hire young people and assist them with this training is well placed.

“It will be important that the training also covers literacy, numeracy and basic ‘employability’ skills.

“This is not all that must be done to tackle youth unemployment, of course. More work is required to improve the skill pathways between school and work, with more relevant and focused tertiary training.

“And the need to get more economic growth is paramount – this will do more for youth employment than anything else.

“The Government will need to turn its mind more aggressively to the structural issues behind youth unemployment. We would like to see the Government recommit to a plan for growth, engage with the business community over it, and show tangible steps towards achieving it with Budget decisions.

“In the meantime, the measures announced today are a good start towards improved work outcomes for young people. They also demonstrate the point being made by employers that it needs to be made easier – not harder – to hire a young person. The measures announced today are consistent with and could usefully be employed in conjunction with the reintroduction of youth rates.”

Contact:

Phone:

Email: