MSD Expands Case Management to Help More Kiwis into Work, Says Upston

According to new data from MSD, case management places have increased from around 60,000 to 70,000, including up to 10,000 clients managed through phone-based support.

The Government has reported significant progress in preparing job seekers for employment, with a major expansion in targeted case management and personalised job-readiness support through the Ministry of Social Development (MSD).

Minister for Social Development and Employment Louise Upston says the results show that the Ministry is "firmly focused on putting job seekers first and matching them with employers who need reliable, motivated staff."

"Increasing regular contact and training opportunities now will help people get ready for jobs and give employers confidence that MSD is the place to find trained, enthusiastic staff who are ready to work," Minister Upston said.

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Case Management and Employment Plans Expanded

According to new data from MSD, case management places have increased from around 60,000 to 70,000, including up to 10,000 clients managed through phone-based support.

This one-to-one service is designed to help people prepare for employment, improve job readiness, and connect directly with prospective employers. Each client is paired with a dedicated case manager who provides guidance, sets job-seeking goals, and monitors progress.

In addition, Individual Employment Plans (IEPs) will be rolled out to approximately 70,000 clients in 2025. These plans are co-designed by the job seeker and their case manager to identify barriers to employment, tailor skills development, and align training with real job market opportunities.

"The way a modern and fit-for-purpose MSD engages with its clients is geared to meeting the Government's Jobseeker reduction target," said Upston. "But equally, it's about preparing people to support themselves and their families in becoming financially independent."

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Economic Context and Job Growth Outlook

The announcement comes amid a challenging economic climate, with cost pressures and slower growth affecting businesses and job seekers alike. However, government forecasts suggest that the number of people receiving a benefit is expected to peak by the end of the year before declining as new projects and investments begin creating opportunities.

Minister Upston cited analysis from the New Zealand Infrastructure Commission, showing that each billion dollars of infrastructure investment per year creates approximately 4,500 jobs.

The Government's major capital programmes—including housing development, transport upgrades, and regional infrastructure renewal—are expected to support thousands of roles over the next 12–18 months.

"We want our people to be ready," Upston said. "MSD is focused on preparing job seekers for positions available now, as well as those expected as the economy continues to improve."

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Focus on Work Readiness and Employer Partnerships

The Ministry has been working closely with employers, training organisations, and regional labour market agencies to ensure that job seekers are equipped with relevant skills.

New initiatives include:

• Industry-based training partnerships, where MSD connects clients with courses linked to sectors facing labour shortages (such as construction, logistics, and aged care).

• Job-ready certification programmes, developed in collaboration with polytechnics and industry associations.

• Employer engagement teams, dedicated to helping businesses identify candidates and reduce hiring friction.

Early outcomes indicate that clients who engage in one-to-one case management are more than twice as likely to enter sustainable employment compared to those who rely solely on standard job placement services.

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Reducing Long-Term Dependency on Benefits

The case management expansion supports the Government's broader aim of reducing the number of long-term beneficiaries. As of mid-2025, around 190,000 New Zealanders receive Jobseeker Support, with a growing proportion experiencing long-term unemployment.

Upston emphasised that the Government's welfare approach balances compassion with accountability:

"We believe in supporting people to get back on their feet, but we also believe in expectations—participation, training, and progress toward employment are part of that."

MSD's Work-Focused Support Strategy, launched earlier this year, aims to improve employment outcomes by integrating job matching, digital coaching tools, and employer-led work trials.

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Collaboration Across Government

The initiative is part of a coordinated effort across multiple ministries. The Ministry of Business, Innovation and Employment (MBIE) and Te Pūkenga are collaborating with MSD to align training pathways with skill shortages, while Work and Income branches are trialling "local job hubs" in regions such as Waikato and Canterbury.

These hubs act as one-stop shops for job seekers, providing career advice, skills assessments, and connections to local employers.

The National Infrastructure Pipeline also continues to serve as a forward-looking employment indicator, allowing MSD to forecast regional demand and align training accordingly.

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Minister Upston: A Long-Term Investment in People

Minister Upston said that while the headline figures show clear progress, the long-term success of the initiative will depend on sustained collaboration between government, employers, and training providers.

"We're modernising MSD to ensure it's not just an agency for paying benefits but a proactive employment partner," she said. "Our focus is on empowerment—helping people move from dependence to independence, and from uncertainty to opportunity."

The Minister added that the Government remains confident that its Jobseeker reduction targets are achievable as more employment pathways open through investment, training, and business growth.

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Looking Ahead

The next stage of the programme will include expanded digital services, giving clients access to online employment coaching, virtual interviews, and real-time job alerts. MSD is also evaluating pilot schemes using data analytics to identify clients most at risk of long-term unemployment and intervene earlier.

By the end of 2025, the Ministry aims to have case-managed over 100,000 job seekers, each with a personalised plan connecting them to training or direct employment.

As the labour market improves, officials expect a gradual decline in benefit dependency and a steady rise in job placements across priority sectors.

"Every person we help into work is a win for them, their whānau, and their community," Upston concluded. "That's what this focus on preparation and partnership is all about."