Clayton Mitchell New Zealand First MP

I think there are a lot of people in New Zealand who think unemployment is around five per cent because that's what the government says. The stark reality is NZ's actual unemployment rate is likely far higher than the official figure of 130,000 because anyone with one hour's work is considered employed.

This is both shocking and true. If we are in work for one hour a week, we are off the unemployment statistics, even though we're clearly not employed.

In-work Tax Credits kick in for individuals at 20 hours a week (30 hours for couples), but again, there aren't many Kiwis who can cover all the bills with only 20 hours work a week, even with a government top-up.

Our ‘official' figure for young people aged 15-24 who are not in employment, education or training (NEET) is currently at 90,000, but similarly, all they need is one hour a week and they're out of those statistics.

So what are our actual unemployment statistics? The Minister of Finance recently stated in the House that only around 80 per cent of the workforce is ‘full-time' (32 hours a week). Thirty-two hours a week on minimum wage is only $504 before tax.

‘Full-time' should be the level where people can sustain themselves without government help. If 20 per cent or more of our workforce is working under 32 hours, we have a problem.

The five per cent unemployment figure is obviously open to interpretation. We could be talking the difference between 130,000 unemployed and 507,000 ‘under-employed'.

From a New Zealand First point of view, if you are not capable of sustaining yourself without a top-up from the public purse, you may have a job, but you are definitely not fully employed. Whether it's one or 40 hours a week, Kiwis deserve a fair day's pay for a fair day's work. Allowing businesses to pay people less because they know the government will make up the shortfall is short-term thinking that has turned into long-term corporate welfare.