An economist has warned that changes to youth benefit eligibility will cost more than they save over the next 20 years, RNZ reports. From November 2026, the government will end Jobseeker payments to 18-19-year-olds whose parents earn more than $67,225.

Economist Shamubeel Eaqub told Midday Report the policy was mean-spirited and could result in $156 million in net costs over two decades, or up to half a billion dollars when factoring in wellbeing and mental health pressures. Social Development and Employment Minister Louise Upston defended the legislation, saying it reflects a commitment to reduce benefit dependency and encourage work. New Zealand's unemployment rate sat at 5.6 percent for the June 2026 quarter, RNZ business (NZ) reports.