Supporting the Next Generation of Workers in New Zealand

Nishka.K
5 days ago
2 min read

The New Zealand Government has announced two major initiatives to help young people break free from long-term benefit dependency and move into meaningful employment. Minister for Social Development and Employment, Louise Upston, says these steps are designed to set young people on a path towards education, training and work rather than a lifetime on welfare.

From November 2026, young people aged 18 and 19 without dependent children will no longer automatically qualify for Jobseeker Support. They instead will have to pass a Parental Assistance Test to access these benefits.

This test has two parts:

Parental income test – parents income must be the same or below a set income threshold.
Parental support gap test – proof that the applicant cannot reasonably rely on parental support.

The current threshold is $65,529 (based on a couple with children receiving the Supported Living Payment) and will be adjusted annually. This makes sure that young people coming from low-income families can still get all financial help when needed.

$1,000 Bonus for Staying in Work

Alongside this, the Government is introducing a $1,000 bonus payment for young people aged 18–24 who move from Jobseeker Support into employment and stay in work for at least 12 months.

To qualify, participants must:

Have been on Jobseeker Support for at least 12 months
Work with the new Community Job Coaching service
Find a job and stay employed (without returning to the benefit) for 12 months
Be in work at the time of their application

This bonus will be available from October 2026 and forms part of the National Party’s Welfare that Works policy.

Breaking the Welfare Trap

According to modelling, people who go on Jobseeker Support under the age of 25 spend an average of 18 or more years on benefits over their lifetime. Currently, 15,045 18–19-year-olds are on Jobseekers, which the Minister believes is far too high.

By reforming access to benefits and providing incentives to stay in work, the Government hopes to reduce dependency and build a stronger, more skilled workforce.

Additional Support for Young Jobseekers

The initiatives build on several other measures already rolled out, including:

4,000 places for Community Job Coaching
A new phone-based employment case management service
More regular work seminars
A traffic light system to help young people keep on track with benefit obligations

“I am determined that young New Zealanders see education, work and training as their best options for the future,” Louise Upston said.

At a Glance these changes show a clear shift in how New Zealand is supporting its youth. By providing all the necessary sources, the Government is pushing for a culture of independence and opportunity. With a bit of financial incentives, guidance and parental support, this plan is designed to make young Kiwis focused on building a future through study, training and steady employment.