Russel Norman

Universal compulsory work for the dole?

by Russel Norman

John Key didn’t push work for the dole in his speech but it is clearly back on the agenda.

Now I think most everyone can agree that having people spending years stuck on the unemployment benefit is a bad idea. It’s soul destroying, undermines self-esteem and is expensive to the taxpayer. And any ideas of ways to help people move into meaningful work are to be welcomed eg. access to useful training, the option of taking on some kind of voluntary work to keep your hand in while you’re looking for a job, iwi based training may be the best option in some situations, whatever works. (Of course the caveat should be added that some people aren’t in paid work because they are bringing up the next generation or unable to work because they are unwell)

But if it’s being proposed that people on the dole are to be forced to spend their time doing pointless make-work schemes for less than the minimum wage then I don’t support it.

Tze Ming Mok did a great post over at Public Address pointing out all the problems. As she points out: most people are on on the dole short term (67% less than 6 months); the assessment of the 1990s work for the dole scheme showed it did not help people get real jobs (ie it failed) ; Gareth Morgan points to the problems for employers because forced labour isn’t always the best (that’s why feudalism overthrew slavery after all); the Maori Employment and Training COmmission thought it didn’t work for Maori.

There is another assessment of work for the dole from MSD which concluded –

“Participating in Community Work Experience programmes with no wage subsidy decreases the probability of becoming independent of W&I assistance in the first two years after starting a placement. After two years there is almost no difference in the probability of participants and non-participants being independent of W&I assistance.”

That is, work for the dole decreases a person’s likelihood of finding work.

Given this evidence, surely the onus has to be on those pushing it to show why all this NZ experience and evidence should be ignored?

Of course we are yet to see the detail from the Maori Party or the National Party as to what they may want to propose but if they just want to rehash the old work for the dole scheme then it ain’t new and it doesn’t work. But if they have some new good ideas then I’m all ears.

Published in Economy, Work, & Welfare by Russel Norman on Tue, January 30th, 2007   

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