Prime Minister Chris Luxon and Minister for Social Development Louise Upston announced last week that the Government will be imposing further restrictions for Jobseeker applicants. The news sparked an influx of national headlines speculating whether Luxon’s “tough love” approach was a warranted push for youth into employment, or a concerningly out of touch policy that punishes young people for an economic crisis they didn’t create. Unemployed Otago students say it’s the latter.
The Government’s announcement stated that parents earning more than a combined $65,000 per annum would disqualify their 18 or 19-year-old from receiving Jobseeker Support. It also includes a $1,000 bonus for those who become employed and stay employed for a year. Currently, 15,045 18-19 year olds receive Jobseeker Support, 4,300 of which are expected to lose entitlements once the changes come into effect in November 2026. Luxon said, “It’s an incredibly exciting world, but the world doesn’t owe you a living, and nor except in limited circumstances do taxpayers.” In other words: get off the couch and stop playing PlayStation (he said that, too).
A Spinoff article crunched the numbers. This includes the figure that 1,200 people applied for one admin role in two days, that 30,000 people moved to Australia last year, and that since 2023, there has been a 41% increase in Jobseeker claims for 18-24 year olds. One commenter on the article, someone who claimed to work in employment support for young people and Jobseekers with disability for five years, said, “The market is as bad as I’ve ever seen it, with few indications that it’s going to change. My young people are DESPERATE for a job [...] but there aren’t jobs in entry level positions.”
For those positions, there are unprecedented numbers of applications. Data from Seek showed that last year, the number of applications per job was up 32% compared to 2023. RNZ reported in August that unemployment rates are at a five-year high, with young people among the hardest hit according to economists.
With summer approaching, signalling the end of StudyLink payments for tauira, many are struggling to find work and opting to go on the benefit instead. Student Job Search is “basically empty,” said one student, “and [I know] it’s not just me having difficulty finding work.” Quintin, former OUSA President, shared that it had taken their partner around 9 months to find work after graduating with a Master’s. Another student said, “According to the hundreds of entry jobs I’ve been declined from, it’s complete bs.” Not even Macca’s.
Many repeated the same sentiment: it’s not that young people need to “get off the couch” to discover the exciting world of employment Luxon claims is out there – there simply aren’t enough jobs to go around. In our own backyard, OUSA has noticed a significant increase in applications for permanent roles. For example, the same role that received 44 applications last year had 128 in 2025. “What we’re seeing clearly reflects the current state of employment [...] many young people are struggling to secure employment after university, often competing with more experienced professionals for the same positions,” said OUSA HR Advisor Lauren Scrimgeour. From recent interviews for casual roles for the Dunedin Craft Beer and Food Festival, she said that it’s clear that both students and professionals are casting a wide net, applying for positions across New Zealand in an effort to find some means of employment.
Student Support Manager Dwaine Tait told Critic Te Ārohi that his team had noticed similar trends. “We at the Centre are concerned that a growing number of students will struggle to find work during semester breaks, a time when many rely on it to supplement their living expenses,” he said. “With limited employment opportunities available, students are often left depending on critical supports just to get by.” For students who find themselves no longer eligible for government support, Dwaine warned that this could have “serious ramifications to their studies, not to mention the impact it will have on their daily lives.”
Student Job Search has joined the conversation, a charitable organisation who has connected students with employers for more than 40 years. Chief Executive Louise Saviker said in a press release that job listings are actually up 16% compared to 2024, but there’s been a 28% increase in applications in the same time period as living costs and study expenses have gone up. Heading into summer, Louise encouraged businesses and household employers to list their jobs with SJS. “Students are often uniquely placed to be available at short notice bringing energy and meaningful impact to the roles they take on.” If not, word on the street is that the Aussie gold mines are hiring.