Over 80,000 Kiwis Move Off Benefits and Into Work Amid Tough Economy

“Despite challenging economic conditions, the Government has been relentlessly focused on getting New Zealanders into work,” Minister Upston said.

Despite ongoing economic headwinds, more than 80,700 New Zealanders transitioned from government income support into employment in the past financial year, marking a strong push by the Government to support job seekers and reduce long-term welfare dependency.

Social Development and Employment Minister Louise Upston announced the figures this week, highlighting the Government’s targeted approach to connecting people with meaningful employment, even as the broader economic environment remains challenging.

Strong Employment Focus Yields Results

“Despite challenging economic conditions, the Government has been relentlessly focused on getting New Zealanders into work,” Minister Upston said. “It’s encouraging that 80,000 Kiwis were able to kick start new roles over the past 12 months and there will be more to come.”

These results demonstrate the impact of intensified support measures by the Ministry of Social Development (MSD), which has expanded frontline services and modernized job-seeker engagement strategies to deliver more tailored assistance.

Context: Rising Benefit Numbers Amid Economic Challenges

Although many job seekers have successfully entered employment, MSD data released alongside the announcement also reflect the complex dynamics of the labour market during an economic recovery. As of June 2025, the total number of people on a main benefit reached 406,128, an increase of 7,965 people (2.0%) since March 2025.

Similarly, the number of people receiving Jobseeker Support rose to 216,009, up 6,171 (2.9%) compared to March. Minister Upston noted that seasonal employment trends and colder winter months typically lead to more people accessing benefits during this period, a trend observed over the past three years.

“It’s likely this is partially because there’s less seasonal work around during the winter months,” she added.

Expanded Support for Job Seekers

To respond proactively to the changing job market, the Government has bolstered MSD’s capacity to engage with beneficiaries through several key initiatives:

• Case Management Expansion: The number of people in active case management at any given time has increased from 60,000 to 70,000. This includes 10,000 individuals supported through a newly introduced phone-based case management service, allowing for more flexible and responsive assistance.

• Youth Employment Initiatives: An additional 2,100 places have been created for young people to access community-based job coaching services, helping them develop work readiness, confidence, and employability skills.

• Personalized Employment Planning: Job seekers are increasingly being supported through regular work seminars, structured employment plans, and the implementation of a ‘traffic light system’ that helps monitor and encourage their progress towards employment goals.

Strengthening Accountability and Encouraging Transitions

In a further move to enhance engagement, the Government has shortened the reapplication cycle for welfare recipients. Previously, beneficiaries had to reapply annually, but under new policy settings, reapplication is now required every six months. This provides MSD with additional touchpoints to check in, reassess individual circumstances, and offer targeted job placement support.

“This gives MSD an extra opportunity to support them into a job,” Minister Upston explained.

A Balanced Approach to Welfare and Work

While acknowledging the positive momentum, Minister Upston also expressed empathy for those still navigating difficult economic circumstances. “We know some Kiwis are still doing it tough while the economy recovers, but we’re working as hard as possible to get New Zealanders off welfare and into work,” she said.

The dual reality of increasing benefit uptake alongside notable job placement figures reflects both the pressures of a recovering economy and the effectiveness of a more active, supportive welfare-to-work system.

The Government says it remains committed to further reducing long-term welfare dependence by removing barriers to employment, fostering job-ready skills, and ensuring that every New Zealander has the opportunity to participate meaningfully in the workforce.