This annual report - Taranaki District Health Board

YOUNG PEOPLE RELIANT ON BENEFITSIntroductionIn New Zealand, young people who newly enter the benefit system comprise three maingroups: those coming on to the Invalid’s Benefit, many of whom have long-term disabilities;young mothers coming on to the Emergency Maintenance Allowance because they do nothave financial support from their families; and young people taking up the IndependentYouth Benefit because they do not have the support of their families. Research suggeststhat for these young people, being reliant on a benefit at a young age is linked to long-termbenefit receipt. Of all young people aged 16 and 17 years who entered the benefit systemin 1999, 42 per cent were on a benefit in 2009 (although most of these people had notreceived a benefit for all of the ten year period) [24].In New Zealand during the September 2012 quarter, there were 34,300 unemployed youngpeople aged 15 to 19 years, resulting in a youth unemployment rate of 25.5% [25]. Thishigh unemployment rate (compared to the total unemployment rate of 7.3%) reflects therelative difficulty encountered by young people in making an initial transition into their firstjob and the increased vulnerability of young people to unemployment in times of economicrecession [25] [26]. Between the December 2011 quarter and September 2011, the youthNEET rate (15 to 24 year olds not in employment, education or training, calculated as aproportion of the total youth working-age population) was between 13.1 and 13.5 percent[25]. NEET rates were higher for Māori and Pacific young people than for European andAsian young people (September 2011 quarter: Māori 22.2%, Pacific 17.6%, NZ European9.6%, Asian 7.2%) [27].Pathways into non-participation in work, education and training are complex and likely toarise from a multifactorial accumulation of adversity. Risk factors for unemployment andlong-term benefit reliance can be divided into individual, family/demographic, peer group,school, labour market and neighbourhood/community factors [28]. Individual factorsinclude: conduct disorders, behavioural problems and attention difficulties; lower IQ;physical health problems; early pregnancy; and substance abuse. Family/demographicfactors include: low family income; parental occupation and education level; youngermother; and family conflict. Peer group factors include problems relating to peers. Schoolfactors include: lack of school involvement and attendance; transitions from primaryschool; and school effectiveness. Labour market factors include: the strength of theeconomy and experience of unemployment. Neighbourhood/community factors include:socioeconomic factors and level of early school leaving.Non-participation in work, education or training has been associated with a variety ofadverse outcomes for individuals, families and society. Young people not in work,education or training: have worse employment opportunities and lower earnings; are morelikely to be reliant on long-term benefits; are more likely to be involved in crime; are morelikely to have an early pregnancy; have poorer mental health in later life; are at higher riskof substance abuse, suicide and homelessness; and can perpetuate the intergenerationaltransfer of poverty [28]. On a more positive note, research also suggests that some ofthese adverse outcomes decrease once young people find permanent employment, orreturn to further education [19].The following section uses data from the Ministry of Social Development’s SWIFTTdatabase to explore the number of young people aged 16–24 years who were reliant on abenefit during 2000–2012.Data Source and MethodsDefinition1. Number of young people aged 16–24 years who were reliant on a benefitData SourceNumerator: SWIFTT Database: Number of young people aged 16–24 years who were reliant on a benefitDenominator: Statistics NZ Estimated Resident Population (projected from 2007)Young People Reliant on Benefits - 80