Paradoxically, the United States economy has been growing for about a year, and this has sparked debate over the definition of the term "recession". The National Bureau of Economic Research, the academic body that announces the beginning and end to US recessions, has not sounded the end of this recession because economic growth has not been accompanied by job growth. Committee member Robert Hall: "I don't want to say that a recession is over if more and more people are unemployed and job growth is negative."

Some economists say the US job market is undergoing structural change. Erica Goshen of the Federal Reserve Bank says the usual story is that companies temporarily lay-off staff in a recession and then call them back to work when economic conditions pick up. But most of the jobs that are being lost in the US this time aren't coming back. Businesses are either boosting productivity with the remaining workforce, or are investing in new technology. The result is a jobless recovery that, for many people, is indistinguishable from recession.

Source — The Independent 4 June 2003 "Economy expands, payroll shrinks" by Jon Hilsenrath, originally reported in the Wall Street Journal

OECD: WHAT WORKS IN WELFARE

Speaking to Linda Clark on National Radio last week, Pearson says that the most effective welfare systems are those that provide each client with a case manager who the client can trust to be on their side. This case manager must be skilled to identify their clients' barriers to employment and creatively help to overcome them.

At the same time, clients have to take steps to either get a job or improve their employability and Pearson believes there must be an element of compulsion in this. He says that it is not uncommon for someone who is long-term unemployed to say they want a job and really mean it, but will not overcome their fear of trying unless they know they will suffer consequences if the don't. Pearson believes this can be achieved simply through a contract that clearly sets out what steps the client agrees take, as well as what support they can expect from the welfare system to help them with this.

Pearson says that unemployed young people require a different approach to helping them integrate into the workforce. He regards work experience as a key tool for young people who have yet to start a working life … but he warns that the work experience or work scheme placements must lead somewhere and the responsibility of the welfare system doesn't stop when a work experience or scheme placement ends.

Source — Interview with Mark Pearson on National Radio Nine to Noon 5 June 2003

ACT ON BENEFIT SANCTIONS

Newman says that the lack of suitable workers in a district that has one of the highest unemployment rates in the country illustrates the need to compel beneficiaries to work. Newman: "Making employment-based welfare-to-work programmes voluntary fails to take into account the fact that the most effective way to teach people the work ethic is to get them to work. Imposing upon them the disciplines of the workforce helps them gain first-hand experience of the work habits and social skills that are needed in employment. That includes using sanctions — if someone turns up late, their benefit should be docked. If they don't turn up at all, it should be stopped."

Source — Muriel Newman's weekly email column 6 June 2003 "Taxpayers deserve better"

SOCIAL WORKER EXODUS

Source —New Zealand Herald 3 June 2003 "Welfare cases rises social workers are poached" NZPA

CALL CENTRE SKILL SHORTAGES

This worker shortage has not resulted in a jump in call centre wages. The average call centre staff salary rose less than 1% last year (to about $40,000). Cheaper New Zealand labour costs makes running call centres 23% less expensive than in Australia, and puts the NZ industry in a position to take more and more call centre work away from competitors.

Source —The Dominion Post 2 June 2003 "No carrot for staff shortage" by Tom Pullar-Strecker; New Zealand Herald 4 June 2003 "Call centres send out SOS" by Peter Griffin

RICH: BACK TO TRIED AND TRUE?

— Click on the panel (right) to read the full interview with Katherine Rich.

— our summary of her "Welfare Dependency" discussion paper can be found in The Jobs Letter No.186

TOOLS FOR SCHOOLS

Bell-Booth believes that the current shortages of skilled tradespeople is related to a decreasing interest in trades careers amongst school students. This shouldn't be a surprise, since in recent years there has been a decline in the teaching of trade technical skills in many secondary schools ... some of which have closed down their old workshops. The training of Trade Technical teachers has also nearly ground to a halt.

Current education funding means that schools who now want to get back to trade technical training are struggling with the capital costs required to get a workshop up and running. Other schools from lower decile areas have very old workshops and lack resources to buy tools and materials for students to work with.

Howatt also wants to see retired people invited to become mentors in trade technical classes: " These old guys don't have to be teachers. They have more information in their heads than is written anywhere. But some of them are great teachers and call a spade a spade — the kids like that, and if you have the attitude, you can learn the skill."

— Apprenticeship Training NZ can be contacted at 0800 NZATNZ (0800 692 869).

Source — Business to Business Newsletter June 2003 (Vol.12 No.6) "Pushing for the trades to come alive again"; launch of the "Tools for Schools" programme 22 May 2003 Palmerston North City Council

MAYOR SHADBOLT STILL ON THE JOB

Venture Southland, the local economic development agency, is now becoming the umbrella organisation of all Mayors Taskforce for Jobs projects involving the Southland District, Gore District and Invercargill City Councils.

Tim Shadbolt was one of the original seven Mayors that got the national Taskforce for Jobs launched in 2000. This initiative now has 57 Mayors signed up, which is 77% of all Mayors in New Zealand.

Sources — Southland Times 10 June 2003 "Shadbolt pulls out of jobs taskforce" by Karen Arnold (also reprinted in New Zealand Herald); Press Release Tim Shadbolt 12 June 2003 "Mayor Clarifies position on Mayors Taskforce"; New Zealand Herald letter to editor 12 June 2003 "Shadolt still on job" by Garry Moore, chairman of Mayors Taskforce for Jobs

GREENS CRITICISE BIG BOX STORES

Snow argues that a number of the large companies — including The Warehouse, Harvey Norman and Rebel Sports — fail to "adequately address the issue of sustainability" in terms of their social and environmental impacts. He doubts that the big chains employ many local people when compared to the jobs lost as competing local stores close down.

Snow calls for communities to play a greater role in determining the mix of retailing in their areas. But he says the Resource Management Act is proving to be of little use in the fight against mega-developments. He cites the example of Dunedin, which opposed The Warehouse opening a store in the south of the city: The Warehouse took its case to the Environment Court, and won.

Donald : "The impact of big box retailing is profound. A study by economists at BERL has calculated that every $1 million of imported products costs the New Zealand economy around 20 jobs and more than $500,000 in welfare payments, loss of taxation and loss of spending power. From the figures in the most recent annual report we see that the products imported by The Warehouse Ltd alone during the years 1990-2001, cost the New Zealand economy a total of $2,040 million. Based on the above, The Warehouse's imported products cost around 75,000 New Zealand manufacturing jobs in the same period. Add to this the imports of other major chains such as the Briscoes Group, Farmers and the major apparel retailers and we start to see the full magnitude of the damage..."

Sources — New Zealand Herald 2 June 2003 "Environmentalist criticises damage of oversized stores" by Kevin Taylor; Waikato Times 2 June 2003 "Chain Stores take big hit"; Christchurch Press 7 June 03 "Generosity Silences Critics" by Seth Robson; and "Small Businesses Duck as Big Box sales boom" by Rod Donald;

DONALD ALSO CRITICISES GENEROSITY

The Christchurch Press contacted the manager of a large local environmental lobby who said he believed The Warehouse was having a negative impact on Christchurch communities. But he also told the newspaper that he would not identify his organisation nor go "on-the-record" criticising The Warehouse because he believed this would jeapardise his future funding applications to the Tindall Foundation.

Rod Donald says he is not suggesting that the Tindall Foundation be closed down. Donald: " It is a cleaner source of funding than casinos or pub charities, but those who receive funding from Tindall need to find their tongues when it is appropriate to criticise The Warehouse's business practices..."

Gray: "These unfounded allegations demean the good work of the many thousands of New Zealanders working hard within the community sector on Foundation-funded projects, as well as impugning the integrity of the Foundation, staff and its trustees. The Foundation's relationships with groups and projects that it funds are open and based on respect for the commitment and work of the recipients. There is no pressure direct or otherwise, in return for funds, for these groups to alter their views on issues in any way.

" Messrs Donald and Snow need to be more honest about their reasons for attacking the Foundation in this totally unfounded manner. It certainly is not because the Foundation is somehow buying peoples' silence, as they allege. Could it be that they wish to receive attention for their own particular causes by blatantly misrepresenting the motives of others?"

— more information about the Tindall Foundation and it's funding processes can be found on their website at http://www.tindall.org.nz/

Source — Christchurch Press 7 June 03 "Generosity Silences Critics" by Seth Robson; and "Small Businesses Duck as Big Box sales boom" by Rod Donald; Letter from Trevor Gray to the Christchurch Press 13 June 2003;