Bring back the youth minimum wage rate - ACT

Unions are calling for more support for jobless people and the ACT Party wants the youth minimum wage rate reintroduced after Household Labour Force figures showed a very small drop in unemployment.

Figures released yesterday show the rate edged down to 6.6 percent in the March quarter from 6.7 percent in the previous quarter as the number of unemployed fell by 2000, or 1.4 percent, to 155,000.

The Government said the decrease was "only a start" and more growth in the economy was expected over the next six months.

Council of Trade Unions secretary Peter Conway said 155,000 people out of work compared with 90,000 in June 2008.

"It's true we live in tough times but things are toughest for those on low incomes struggling to make ends meet and those without a job," he said.

"They should be a priority for any government."

The National Distribution Union's general secretary Robert Reid said unemployment would come down quicker with better monetary policy and industry support from the Government.

He suggested tackling the exchange rate and improving government procurement policies.

A spike in youth unemployment, which hit 27.5 percent for the 15-19 age group, worried ACT's finance spokesman Sir Roger Douglas.

"National's refusal to reinstate a youth minimum wage relegated over 12,000 young people to the unemployment scrapheap and yesterday they admitted as much by announcing that they need to pay businesses a $5000 subsidy to employ a young person for six months," he said.

"If National is serious about helping young people into jobs they should stop trying to pick winners, scrap expensive make work schemes and reinstate youth rates immediately."

The previous government scrapped the youth rate and ACT has argued ever since that applying adult minimum rates to young people is pricing them out of the jobs market.

Labour's employment and youth affairs spokeswoman Jacinda Ardern said the youth unemployment rate was more than four times the average rate.

"We've reached crisis point, with more young people looking for work now than we have ever seen on record before," she said.