New Zealand Herald social issues reporter Simon Collins writes that “Employers are rushing to gain new $5000 subsidies for young workers” and why wouldn’t they? The new ‘Job Ops’ scheme provides $3000 upfront, and $2000 after six months, to any employer who takes on a previously unemployed worker under 25 in an “entry-level” job. What employer would turn down a five grand government hand out to pay some of their wage bill with? Auckland based wall art company Crystal Ashley has used the subsidy to employ someone to operate a cutting machine for minimum wage. Far from creating a new job, the company’s directors, Nandar Thwin and David Tan, said they would have employed an extra person within a few weeks anyway. Just like the governments deal with McDonalds, Job Ops is another corporate welfare scheme.

Employers and Manufacturers Association chief executive Alistair Thompson was remarkably honest, saying “Most people are not going to hire someone for something they don’t need,” although he contradicted himself by stating the the government should tackle the “real” causes of youth unemployment, like a “high” youth minimum wage. Does Thompson expect us to believe that employers who wouldn’t hire someone for something they don’t need will change their mind if they can pay that ’someone’ a lower wage? Three years ago the Unite Union’s ‘Supersize My Pay’ campaign ended a system where employers could discriminate based on age and pay young workers less than older workers doing the same job. Thompson is stuck in the past. But while the more obvious form of exploiting young workers is gone, present employers are still getting a free ride from the state.