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Budget 2011 Announcement - Youth Employment Package

Government has announced a Youth Employment Package as part of Budget 2011, with three components:
* Skills for Growth
* Job Ops with Training
* Limited Service Volunteer programme.

1. Skills for Growth:
A subsidy for employers to employ and train young people in high demand industries (e.g. aged care, horticulture and agriculture). The subsidy will be provided for around 1,000 young people a year, costing $17.2 million over four years.

Employers will get a $5,000 subsidy for training and in-work support to help the young person achieve a recognised industry qualification to NZQF Level Two.

The subsidy is paid in stages:
* $1,000 when the employer provides Work and Income with a training plan and confirmed job offer.
* $3,000 after the young person has been in employment and training for three months.
* $1,000 after a year â?? if the young person has achieved a qualification, been in the job for a year or is still in training.

2. Job Ops with Training:
A 'refocused' version of Job Ops, incorporating training in the subsidy for employers, costing $13 million in 2011/12. Job Ops with Training will:
* Provide a flexible subsidy of $5,000 to employers that can be used for both wages and training.
* Require the employer to develop a training plan that results in skill development for the young person.
(Note: The Job Ops programme operating in 2010/11 provides employers with wage subsidy payments totaling $5,000.)

3. Limited Service Volunteers (LSV):
LSV is a six week residential confidence building programme for 18-24 year olds run by the NZ Defence Force at Burnham, Trentham and Hobsonville. Funding of $25 million over four years will be provided to send 1,500 young people a year on LSV, targeting young people who have been on a benefit for longer than six months and who lack the confidence to find work.

For more information see: http://www.beehive.govt.nz/portfolio/Social-Development-and-Employment