Reduce Tax Cuts, Create More Jobs
January 6, 2011 New Zealand Finance
The Government has been urged to reduce their efforts to cut tax rates, and concentrate on creating more jobs, after new figures were revelaed showing the country’s astoundingly high youth-unemployment rate.
On January 6th the New Zealand Council of Trade Unions came forward and urged the Government to take steps to address the pressing issue of youth unemployment. The call comes in response to recent statistics that showing that unemployment among potential workers aged 15-24 is currently at 19.4 percent.
According to the most recent data available from the Organization of Economic Cooperation and Development (OECD), New Zealand’s youth unemployment rate is approximately 0.9 percent above the average for all surveyed OECD nations. Additionally, since 2007 the rate has also grown at 8.2 percent per annum, faster than the OECD average of 5.3 percent.
James Sleep, representative for the Council of Trade Unions, claimed that the Government’s handling of youth unemployment has been inadequate, and even counter-productive. He elaborated, saying that the national cuts in education funding have undermined young peoples’ ability to enter tertiary education or internships. James Sleep contested that the Government should concentrate less on attempting to provide tax cuts, and instead spend the equivalent money on job creation. Shamubeel Eaqub, New Zealand Institute of Economic Research principal economist responded to the OECD figures and James Sleep’s proposal, saying that the youth unemployment rate was particularly susceptible to economic movements, and youth unemployment was “part and parcel” of recessions.
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