- Hon Louise Upston
An evaluation has found MSD clients are more on top of their job search responsibilities under the Government's traffic light system, Social Development and Employment Minister Louise Upston says.
"90 per cent of clients surveyed as part of the Ministry of Social Development's latest evaluation said they found the traffic light system has been helpful for understanding their obligations, which include a range of activities towards finding employment," Louise Upston says.
"We're also seeing nearly 99 per cent of clients are fulfilling their obligations, along with a 10.6 per cent drop in the number of sanctions issued between the September 2024 and September 2025 quarters."
"The traffic light system was designed to reset the expectations for those on welfare and we now know this reset is having a big impact.
"The traffic light system was introduced in August 2024 and uses traffic light colours to help beneficiaries stay on track with their obligations. The system was a cornerstone of our Government's welfare system reset, which incentivises employment over welfare dependency." Louise Upston says.
"The welfare system will continue to support unemployed New Zealanders into work as labour market conditions improve.
"Welfare dependency in New Zealand often begins when young and capable people don't gain employment.
"The traffic light system ensures the welfare system is more integrated and helps jobseekers understand and navigate their obligations, helping them to be prepared, proactive and seize opportunities when they come along. Welfare is conditional on recipients meeting their responsibilities.
"Our Government has invested heavily in a range of frontline services to help jobseekers stay on track with their obligations and support clients with complex needs" Louise Upston says.
"We've already introduced a number of initiatives including phone-based employment case management service, more frontline staff for more contact with jobseekers, regular work seminars, increases to the number of community job coaches and the option of non-financial sanctions for some clients."
"In late 2025 we also announced a $1000 bonus for young people who move from community job coaching into work and stay off the benefit for more than a year. We've also improved the way MSD works with businesses.
"Times have been tough, but the welfare system needs to be fair, firm and simple. We know jobs are out there and work will always be the best way for New Zealanders to support their families and get ahead in life.
"We're committed to fixing the basics and building the future and reaching our target of 50,000 fewer people on Jobseeker Support by 2030."
The evaluation report is available here: https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/evaluation/traffic-light-system/tls-evaluation-findings.html
