Long-term dole recipients at record high

This data (from MSD) shows the number of people on the jobseeker (dole) benefit, who have been on a benefit for over 12 months. So this excludes people who have lost their job, gone on the dole for a few months, and then got another job. This is only people who have been there for more than 12 months.

The start shows the peak of just over 80,000 post the GFC. Then from 2010 to 2015 it declined from 80,000 to 65,000.

In 2018 it started increasing again and by March 2020 was already at 84,000. So even before the impact of Covid-19, the numbers under Labour had grown by around 20,000 to exceed the post GFC peak. Since then the numbers keep rising, despite the lockdowns having ended middle of last year. In March 2021 it reached 120,000 – almost double what it was when Labour took office.

Of interest is that overall jobseeker numbers have started to decline. They fell 11,000 in the March 2021 quarter. But it was all with those there short-term. Those under 12 months on the benefit fell 19,000 and those over 12 months rose by 8,000.

The Government of course has just announced an extra $3 billion of spending to increase welfare benefits. Will this reduce or increase the numbers who are on welfare long-term?

Most people want a generous welfare system for those who are temporarily out of work. But I also believe most people don’t want people spending years and years on the unemployment or job seeker benefit, rather than actually getting back into the workforce. And it isn’t as if there is a shortage of jobs out there.