The Unintended Consequences Of Abolishing Youth Rates

act-new-zealand

Mon Mar 26 2012 13:00:00 GMT+1300 (New Zealand Daylight Time)

The Unintended Consequences Of Abolishing Youth Rates

Monday, 26 March 2012, 1:12 pm
Press Release: ACT New Zealand

The Unintended Consequences Of Abolishing Youth Rates
Press Release by ACT Leader John Banks
Monday, March 26 2012

ACT Leader John Banks today expressed dismay at reports that the high level of youth unemployment is contributing to increasing depression and anxiety problems for teenagers.

“Employment is not only financially rewarding, it increases our skills, stimulates us mentality, and boosts our self-esteem,” Mr Banks said.

“ACT believes it is important that young people have the opportunity to experience the dignity of work, and is why we opposed the abolition of the youth minimum wage.

“Labour’s abolition of youth rates has seen youth unemployment skyrocket - an inevitable result of competition between young people and older, more experienced workers for the same rate of pay. Experience wins every time.

“University of Canterbury Economist Eric Crampton estimated that abolishing the youth minimum wage had put 13,100 youth, who would otherwise have been working, out of a job by the middle of last year.

“The abolition of youth rates has been a disaster - first pushing youth out of work, and now affecting their sense of self-worth.

“It is time we dropped this senseless Labour policy and reintroduced a youth minimum wage,” Mr Banks said.

ENDS

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