Mayors Taskforce for Jobs Nelson Forum Update from the Working Group Professor Ian Shirley

Introduction The 30 year life LIFE Birth + + Death Youth Ghetto Old Age Redundancy Continuum  Conditions that gave rise to the establishment of the Taskforce  The myths that continue to shape policy options for local and regional government  Changing regional, national and international environments in which we live and work Several themes emerge from the profile of a senior citizen – relevance to this update for the Mayors Taskforce

The 30 year life is a conceptual model which captures the outcome of three significant trends, namely: changing profile of the New Zealand population changing dynamics of the labour market changing policy priorities and practices These trends explain why the Mayors Taskforce was established and why the focus has been concentrated predominantly on youth unemployment and the job guarantee Changing population trends and projections the enduring mythology of an ageing population – in reality a youthful population and this is reinforced when you examine dependency ratios internal and external migration – urbanisation and rural depopulation family and household formation and the supply and demand of goods and services – home ownership, capital assets

The Changing Dynamics of the Labour Market Major shifts occurred through the 1980s and early 1990s Unemployment was treated as an ‘adjustment problem’ Short-term solutions employed to provide welfare for the unemployed National databases failed to capture what was happening especially at the interface between households and firms Macro-policy settings and practices failed the regions and they failed local and regional government Focus on big business and short-term profitability rather than small business which provides the bulk of employment opportunities

Changing policy priorities and practices There were a number of benefits that came from these radical shifts in policy but there were also major deficits: the productive sectors of the economy were undermined structural unemployment increased dramatically – long-term unemployment – work-rich and work-poor households New Zealand incurred a substantial social deficit – deprivation – communities of ‘choice’ and communities of ‘fate’ reversed the distinctive policy arrangements and priorities which made New Zealand one of the most successful countries in the OECD Changes occurred over a period of two decades – represented a major transition from the command economy  economic vulnerability  economic rationalisation

The mythology of the ‘welfare state’ based on a concept of social security that characterised European countries but which was never the focus of economic and social policy in New Zealand industrial conciliation and arbitration (1894) – a wage sufficient to provide for a household with two or three children family wage extended during the 1930s to include access to education and health services and the provision of state housing – a very selective benefit system for those outside the labour market full employment for men as a means of securing household income A set of arrangements based around full employment and a fair wage which led to New Zealand’s reputation as a social laboratory for the world

the Mayors Taskforce for Jobs was established to address long-term unemployment across cities, districts and regions of New Zealand The escalation in long-term unemployment and the failure of both central government and the wider community to address the waste of human resources evident over two decades led to a group of Mayors identifying and accepting a leadership role in employment In particular the focus has been on what is described as a youth guarantee – that all young people under 25 years of age be in paid work, in training or education, or in useful activities in the community The focus on the youth job guarantee is one of the central issues that our working group has been asked to consider on behalf of the Mayors Taskforce l The proposition emerges from national employment plans in Europe and was first raised with the Mayors Taskforce in 2001 l It has also been the subject of a major research programme in Australia led by Professor Bill Mitchell at the University of Newcastle

The Working Group has focussed on the following tasks:  an examination of the youth job guarantee as implemented in other countries with a view to exploring its feasibility in New Zealand  A summary of the changing dynamics of the labour market with some emphasis on the ‘skills deficit’ which has emerged as a major problem today  A review of transition projects for youth with emphasis on the interface between education and paid employment  A reassessment of regional and national initiatives aimed at promoting employment opportunities and economic participation The working group will finish its task early in 2006 with the intention of informing the schedule of work and priorities of the Mayors Taskforce