Tackling Unemployment: The Government's Response to the Recommendations of the Employment Task Force

Marianne Bray, Justin Strang

The work of the Employment Task Force and the subsequent proposals put forward by the Government have been a major area of policy development since the last election. Together with the tax package, the employment proposals are central to the Government’s social policy agenda, setting the direction for employment policy. The legislation bringing these proposals into being was passed by the House of Representatives in May 1996.

This paper explains the changes being implemented by the Government in response to the recommendations of the Employment Task Force and how the changes fit within the Government’s wider goals for employment and economic growth.

The employment package includes changes in the income support system, initiatives to remove labour market disparity and recognise labour market diversity, an attempt to align the education and training sectors with employment policy, and initiatives targeted at Māori. Because the employment programmes in the package are aimed at the most difficult groups, the results will probably be modest and achieved over a long time frame.

It remains to be seen whether this package is sustainable in the market economy and will deliver the hoped-for relief in unemployment.