The number of New Zealanders receiving a benefit has risen to 302,000 – the highest level since 2005.
There was “no escaping” the effects of the recession on the economy, Social Development and Employment Minister Paula Bennett told Parliament’s social services select committee this morning.
As unemployment soared the number of people receiving the dole increased by a net 1000 a week and the number of people claiming other benefits also rose, Ms Bennett said.
“We are seeing unemployment rising more sharply than in previous recessions.”
Maori, Pacific Island and youth unemployment were of particular concern with more than 15,000 Maori, 5000 Pacific people and 15,000 youth receiving an unemployment benefit to the end of May, Ms Bennett said.
A lack of skills and experience meant people aged 18-24 always felt the effects of a recession “more acutely”.
“They are the last to enter work and the first to come out when things go bad.”