I. The State of Youth Employment in New Zealand
As economic conditions and labour markets evolve, young people face significant challenges in securing employment, a critical issue impacting New Zealand’s socioeconomic development. Data from Statistics New Zealand shows the national unemployment rate rose to 5.1% in the December 2024 quarter, with youth unemployment exceeding three times the national average. As of May 2024, the unemployment rate for 15–24-year-olds stood at 12.4%, far higher than the overall rate of 4.3%, highlighting the acute struggles of young people in the job market.
1. Persistently High Youth Unemployment and Structural Challenges
Youth unemployment is not a short-term issue. Since late 2022, New Zealand’s unemployment has trended upward. In the September 2021 quarter, the youth unemployment rate (15–24 years) was 9.6%, compared to 3.2% nationally and just 2.3% for 25–64-year-olds. The COVID-19 pandemic triggered sharp fluctuations: a spike at the outset, a dip in 2021 nearing pre-pandemic levels, followed by a rebound as economic recovery slowed and immigration policies adjusted. Racial disparities in youth unemployment also persist, reflecting deeper issues like unequal educational access and inadequate skills training.
Many young people rely on part-time or temporary work, characterised by instability. For example, of the 39,400 unemployed youth in September 2021, 31,600 were seeking work, with 42.7% only applying for part-time roles. Inexperience in the labour market further disadvantages them, while unequal access leaves some graduates lacking essential vocational skills.
2. Education-Employment Mismatch and Growing NEET Population
As of the March 2024 quarter, the number of NEET (Not in Employment, Education, or Training) youth in New Zealand rose to 82,000, a 12,000 increase from the previous year (Household Labour Force Survey). Among 15–19-year-old unemployed youth, 53% remained in education or training but struggled to balance work, while only 20% of 20–24-year-old unemployed youth were engaged in education or training, with the rest completely detached from the labour market. Social policy analyst Paul Barber warns that NEET youth face risks like skill deficits, worsening mental health, and long-term welfare dependence: “These young people are at the start of their careers, but the education system hasn’t prepared them for employment, making them most vulnerable to economic marginalisation during crises.”
3. Gender and Employment Pattern Divides
In 2024, men accounted for 85% of annual employment declines, primarily in traditional male-dominated sectors like technical roles and machine operation. Full-time male employment fell by 36,000, while part-time roles increased by 9,000, signalling a shift toward precarious work. Though female employment remained relatively stable, women face limited career advancement and persistent pay gaps.
II. Government and University Initiatives to Support Youth Employment
To address these challenges, the New Zealand government and stakeholders have launched targeted programs, particularly for university youth, to enhance employability and competitiveness.
1. Government Policies: Strengthening Skills-Employment Linkages
The Employment Action Plan (August 2024) outlines 12 actions across three goals to reduce reliance on welfare and align skills withlabourr market needs:
Goal 1: Rapid Employment and Reducing Long-Term Welfare Dependence
Action 1: Community partnerships and personalised employment plans with career mentors for young job seekers.
Action 2: Welfare reforms enforcing job search obligations (e.g., regular progress checks) with sanctions like community service for non-compliance.
Action 3: Targeted support at critical life stages (e.g., school-to-work transitions).
Goal 2: Building a Lifelong Skills Ecosystem
Actions 4–7: Reforming vocational education to align curricula with industry needs; introducing “knowledge-intensive” primary/secondary school programs to boost numeracy and literacy; expanding workplace training subsidies for employer-led skill development.
Goal 3: Optimising Labour Market Matching
Actions 8–12: A “key worker” planning mechanism prioritise New Zealanders for jobs; tightening low-skilled immigration rules; a NZ$1.2 billion regional infrastructure fund to create high-value jobs; enhancing 校企合作 (university-enterprise partnerships) through transparent career information platforms.
2. University and Civil Society Collaboration
Higher education institutions play a pivotal role:
Vocational Curriculum Reform: Many universities offer “micro-credentials” in emerging fields like digital technology and green energy, providing short-term, industry-recognised certifications.
Industry Partnerships: Auckland University of Technology (AUT) runs an “Industry Mentor Program” with local businesses, offering internships and project collaborations.
Civil Society Initiatives: The Youth Employment Aotearoa (YEA) coalition unites businesses and organisations to bridge education and workplace needs. It helps youth document training experiences, enhance job applications, and advocate for policy reforms to better prepare them for employment.
III. Challenges and Outlook
Despite ambitious policies, youth employment in New Zealand faces hurdles: global economic uncertainty, limited skills training accessibility, and historical disadvantages for ethnic minorities. Solving this complex issue requires sustained collaboration between government, civil society, and businesses. Prioritising initiatives that enhance employability, especially for university youth, will be key to alleviating pressure. As economic conditions improve and policies mature, New Zealand aims to create more opportunities and pathways for young people, ensuring their integration into a resilient and inclusive labour market.
More details:
https://www.stats.govt.nz/news/two-decades-of-youth-employment-and-education/
https://www.stats.govt.nz/news/unemployment-rate-at-5-1-percent-in-the-december-2024-quarter/
Ma Yining, Research Institute for International and Comparative Education, Shanghai Normal University
