Benefit numbers not yet reflecting earthquake

The number of New Zealanders on a benefit fell by 12,531 during March says Social Development Minister Paula Bennett.

“While it is encouraging to see another drop in benefit numbers I want to caution against getting too optimistic on the basis of these figures,” says Ms Bennett.

The 3.6 per cent decrease in overall benefit figures to 331,529 was characterised by another drop in the number of people on an Unemployment Benefit, which fell to 59,940 during March.

“I’m obviously pleased that this is the first time Unemployment Benefit figures have dropped below 60,000 in 11 months,” says Ms Bennett.

“However the Government’s support package for Christchurch has distorted the true benefit picture,” says Ms Bennett.

The number of young people on an Unemployment benefit has reduced by 4 per cent over the past year, faster than the overall drop in the Unemployment Benefit rate.

“After increases of 66 per cent and 187 per cent in the previous two years it is heartening to see young people come off benefit,” says Ms Bennett.

“But again I expect to see an earthquake related increase in the coming months,” says Ms Bennett.