MSD Traffic Light System Boosts Jobseeker Responsibility and Employment Outcomes

An evaluation of New Zealand's traffic light system, introduced in August 2024, shows that 90% of MSD clients find it helpful for understanding their job search obligations, with nearly 99% fulfilling these responsibilities and a 10.6% decrease in sanctions. The system aims to reset welfare expectations, incentivize employment over dependency, and is supported by increased frontline services, job coaching, and incentives like a $1000 bonus for young people securing and maintaining work. The government remains committed to reducing Jobseeker Support recipients by 50,000 by 2030 through a fair, firm, and simple welfare approach that helps jobseekers be proactive and seize employment opportunities.