Government ignores own research on Work for Dole

The Alliance said the government is ignoring its own research that shows compulsory work for the dole will not be supported by employers, will reduce jobseekers self-esteem and could mean up to 41,000 other people lose their jobs.

In research carried out by Colmar Brunton for the government employers said;
• Participants would be unwilling and would have a bad attitude.
• Participants would not care about the project and would not put their best into it; they would be socially less able to cope or want to cope.
• Participants were likely to be completely mismatched.
• Employers commitment to continuing in the program would wane.

"The research also said that jobseekers will lose self-esteem if they are placed in a job where they are unsuited. This is the opposite of what the government claims it wants," Alliance Employment Spokesperson Rod Donald said.

"The unemployed are being punished because the government has failed to managed the economy in the best interest of all New Zealanders.

"The Treasury estimated that for every four placements on the work for the dole scheme one real job would be lost. This means that if implemented fully the work for dole scheme will mean up to 41,000 people could loose their jobs due to this scheme.

"This comes at the same time that the government is destroying 5,400 jobs in the car industry and 20,000 jobs in the clothing industry by removing tariffs.

"The sheer size and compulsory nature of the scheme makes it much worse than the current Community Taskforce where the majority of participants are happy to be there.

"The government is already 1,500 places or 23% behind on its pilot for the work for dole scheme, there is no way they will be able to get the extra 150,000 working for the dole if they rely solely on community groups to provide places.

"They will have to get businesses such as Telecom and Fletchers to employ thousands of free workers to get anywhere near their target.

"This scheme is punitive and nasty. Jobseekers working for their dole will have no holiday pay and may have to work through Christmas. There is no employment contract and the hourly rate is fixed despite the market rate for the work, this is not like the real workplace as Peter McCardle claims.

"The government's record on unemployment is appalling. Over the last year employment only grew by 0.4% whereas unemployment grew by 13%.

"As the Employment Service will have to focus on work for dole and not finding real jobs for the 159,000 people affected by this scheme, unemployment will get worse as a result," Rod Donald said.