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Discussion paper

Unemployment insurance: a recipe for more unemployment?

Insurance Welfare reform Unemployment New Zealand

When presenting the Budget 2021 in May, Finance Minister Grant Robertson announced that an unemployment insurance (UI) scheme was being developed for New Zealand. Prior to this, the Productivity Commission had considered UI as part of its inquiry into technological change and the future of work, as had the Ministry of Business Innovation and Employment (MBIE).

This document considers some of the biggest costs and potential benefits of introducing UI to New Zealand. Common features of UI schemes and how they differ across countries are also examined.

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