Friday, November 26, 2010

Welfare Working Group Distortions



On the Welfare Working Group’s latest round of welfare bashing

November 26th, 2010

welfareWell, in its Options report this week, at least the Cabinet-appointed Welfare Working Group was clear about whose interests it is there to serve: ‘The evidence on what is effective in helping beneficiaries into paid work is clear – effective interventions need to have a focus on employers and their needs.’ That would be fair enough if the focus on ‘employers and their needs’ actually meant a recognition that you can’t kick people off welfare without there being jobs for them to fill. But no, it doesn’t mean that at all. In fact, the WWG brushes that unfortunate reality aside in this bizarre paragraph :

Many submissions, while acknowledging the importance of paid work, expressed anxiety about the availability of jobs for people looking for paid work. On the other hand, many employers have told us of the difficulties they have had in recruiting people into entry-level jobs. While this problem was less pronounced during the recession, they indicate it is once again emerging.

So…. the overall lack of jobs in the current economy for the 338,000 people of working age on benefits is brushed aside with the non sequitur that some employers have been having problems in the past in finding people to fill some ‘entry-level’ jobs. Not recently mind you – but since the WWG believes that the recession and its impacts on employment are now allegedly over, this ‘problem’ about entry level jobs is now re-emerging. Really? The job market is picking up and people are turning down the jobs readily available to them? That’s a country I’d like to visit. But in the country that most New Zealanders inhabit, the job market hasn’t picked up, the recession’s impact on employment is ongoing, and – to take just a couple of examples during 2010 – public service restructuring in Wellington and local body restructuring in Auckland have been pushing people out of work, and onto an already crowded job market. Not that you’d know it from the WGG report.

The WWG has a core problem in selling the notion of a welfare system in crisis, and a nation lacking the motivation to work. Reality check: when work was available in the 2000s and job searches were being case managed, unemployment sank to record lows with fewer than 20,000 on the dole. Conclusion: when jobs are there, people work: and when they aren’t, they can’t. It’s not as if a motivational crisis has suddenly engulfed the country in the last two years, when none existed before the recession.

Not that the WWG seems interested in an honest evaluation of the statistics on employment anyway, and the academics on this panel should be ashamed at putting their names to the distortions used to support the report’s ideological bias. The panel is happy for instance, to trumpet a headline rate of 338,000 people of working age on benefits. Over at The Standard, there is an excellent unpicking of the ingredients of that figure: 85,000 have severe mental or physical disabilities. 58,000 have been documented by medical professinals as sick, 112,000 are raising children alone, and 65,000 are actively looking for work. As The Standard concludes :

In fact, when there were jobs for nearly everyone there were just 1,700 long-term unemployed who had been on the dole for over 4 years. If there are any bludgers they are a subset of those 1,700. Hardly worth turning the lives of 338,000 people and their families upside down over.

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