Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Employment Policy Convention, 1964 (No. 122) - New Zealand (Ratification: 1965)

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The Committee notes the observations of Business New Zealand (BusinessNZ) and of the New Zealand Council of Trade Unions (NZCTU), communicated with the Government’s report, and the Government’s responses thereto.

Articles 1 and 2 of the Convention. Employment trends. The Committee notes the Government’s comprehensive information on the Review of Active Labour Market Programmes identifying opportunities to strengthen support for workers facing economic displacement and persons with disabilities, including people with health conditions, as well as on legislative developments and the dialogue with the social partners in this regard. It further notes that the unemployment rate was characterized by low fluctuations within the last years and stood at 3.9 percent – 3.8 per cent for men and 4.1 per cent for women – in September 2023. Similarly stable was the employment rate for persons aged 15 and over, reporting at 69.1 per cent, with 73.9 per cent for men and 64.5 per cent for women, in September 2023. The employment rate saw an overall increase by 0.8 percentage points between the first quarter of 2017 and the first quarter of 2023, while that of the Asian population rose most significantly by 7.3 percentage points and women saw an increase by 2.1 percentage points. The only decreases during this period were among men compared to women and Pākehā compared to Māori, Pacific, and Asian ethnic groups, reporting a 0.2 per cent and 0.1 per cent decrease, respectively. With respect to underutilization, the Committee notes the Government’s 2022 study, finding that it generally concerns more women and younger persons and those born in New Zealand and who live in larger households, with Māori persons being overrepresented in this group. BusinessNZ attributes the underutilization in particular of women and workers with disabilities to an overly protective regulatory regime. The Committee observes that, in September 2023, the total underutilization rate was 10.4 per cent (8.6 per cent for men and 12.2 per cent for women) which is low in comparison with other high-income countries. It also observes that labour underutilization is a broad concept that encompasses unemployment and other forms of mal-employment namely, insufficiency of the volume of work (labour slack), low remuneration (low earnings) and incompatibility of education and occupation (skill mismatch). In this respect, dedicated ILO reports have diagnosed that the problem in many developing countries is not so much unemployment but rather the lack of decent and productive work, which results in various forms of labour underutilization (that is, namely underemployment, low income, and low productivity). The Committee therefore requests the Government to continue to provide information on the results obtained in terms of decent employment generation in response to insufficiency of the volume of work, low remuneration and incompatibility of education and occupation. In the absence of information in this respect in the report, the Government is also requested to provide updated information on the measures taken or envisaged to create employment through the promotion of small and medium-sized enterprises.The Committee also requests the Government to continue to provide statistics concerning the size and distribution of the labour force, disaggregated by age and sex, as well as information on the employment situation and trends in employment, unemployment and underemployment/underutilization.

Active labour market measures. In reply to the Committee’s previous comments, the Government reported on the continued implementation and expansion of the Sector Workforce Engagement Programme, the Just Transitions Partnerships in Taranaki and Southland set up to proactively manage the effects of the potential closure of large regional employers and to enable just transitions for these workers and communities as well as the ongoing cross-agency Review of Active Labour Market Programmes (ALMP), which has identified gaps in terms of early intervention for workers facing displacement from the labour market and for workers with disabilities. Moreover, the Committee notes with interest two tripartite initiatives established by the NZCTU, BusinessNZ, and the Government: the Future of Work Tripartite Forum and the New Zealand Income Insurance (NZII) Scheme. The former continues to identify just transition priorities for New Zealand workforces in response to future of work megatrends and economic shocks focusing on at-risk workforces and communities to develop proactive policies that support workers at risk of labour market displacement to transition to secure employment. Catering in particular for workers becoming unemployed due to redundancy or firm closures and or whose ability to work has been impacted by a health condition or disability, the NZII Scheme was created in 2021 to provide them time and financial security to find a good job that matches their skills, needs and aspirations, or take part in training or rehabilitation for a new, fulfilling career. The Committee welcomes such integrated policies and measures meant to harness the potential offered by the combination of employment and social protection policies to promote future-of-work-related transitions and decent work creation through participatory and inclusive processes anchored in effective social dialogue. It requests the Government to provide further detailed information on the effectiveness and impact of the above measures, as well as on the consultations held with the social partners with respect to their formulation, implementation and monitoring of such measures. The Committee also requests the Government to provide information on potential consultations held with other representatives of persons affected by such measures.

Persons particularly vulnerable to decent work deficits. The Committee notes the employment actions plans, which, over a five-year period aim of improving labour market outcomes for underserved populations, including persons with disabilities, Māori, Pacific peoples, older workers, women, former refugees, recent migrants and ethnic communities. It further notes the central role attributed to the Ministry of Social Development in rendering, together with social sector providers, tailored support in this regard to take up or return to suitable and sustainable employment by targeting cohorts with specific barriers, such as Māori, Pacific People, and youth. Additional beneficiaries are, through specific pilot programmes, persons with disabilities, including persons with mental health conditions (Oranga Mahi programme). The Government further refers to its comprehensive review – called for also by BusinessNZ – of the ‘Tomorrow’s Schools’ program. The 2019 review report revealed deficits in adequately serving some learners, in particular Māori, Pacific People, persons with disabilities, persons with learning needs and those from disadvantaged backgrounds, which the Government envisages to combat with significant reforms to reset Tomorrow’s Schools. The Committee also notes the release, in 2019, of the Youth Employment Action Plan, targeted at improving young people’s education, training and labour market outcomes and focusing in particular on those 9,000 persons aged between 15 to 24 years who are not in education, employment or training for six months or longer and in which women, persons with disabilities and in particular Māori and Pacific Peoples, whose unemployment rates are around twice that of other ethnicities, are overrepresented. As part of the Youth Employment Action Plan, the Government works across the education, welfare and employment systems and partners with Māori and other communities to identify needs and intervene earlier and by improving career guidance and job brokering services. Finally, the Committee notes the Disability Action Plan 2019–2023 (Action Plan) developed together with persons with disabilities, the “Disabled People’s Organisation Coalition” and government agencies. Continuing similar action plans since 2011, the Action Plan aims at delivering the eight outcomes of the New Zealand Disability Strategy 2016–26 – education, employment and economic security, health and wellbeing, rights protection and justice, accessibility, attitudes, choice and control, and leadership – and contains a package of 25 cross-government work programmes to be implemented beyond 2023. With reference to the measures referred to by the report, the Committee observes that active labour market strategies and measures are indeed more successful when tailored to specific employment barriers and circumstances faced by different groups like those identified above. At the same time, while certain of these measures may be effective for some subgroups of these groups, they may not be effective for others. Identifying and understanding the combinations of barriers faced by each subgroup allows for more effective and fine-tuned measures to be crafted. The Committee therefore requests the Government to provide updated, detailed information on the type and impact of employment measures targeting persons with decent work deficits such as youth, including young Māori and Pacific Peoples, women, and persons with disabilities. It further requests the Government to continue to provide information, including statistics disaggregated by age and sex, on the impact of education and training measures to facilitate obtaining lasting employment for young persons and other persons vulnerable to decent work deficits. The Committee also requests the Government to provide further information on the coordination of education and training policies with prospective employment opportunities, and on the consultations held with the social partners in this regard.