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flag Benefit sanctions under New Zealand’s 2024 system affected 2% of recipients, mainly over missed appointments, not job refusal, with limited success in reducing unemployment.

flag Benefit sanctions under New Zealand’s 2024 traffic light system have affected only about 2% of JobSeeker and Sole Parent Support recipients, primarily due to missed appointments or lack of work preparation, not job non-participation. flag Despite rising to 12,900 by September 2025—double the pre-policy average—most sanctions reduced benefits, with young people, men, and Māori and Pacific individuals disproportionately impacted. flag Economist Rob Heyes says job scarcity limits the policy’s effectiveness, risking deeper poverty or poor-quality work, and data gaps prevent tracking employment outcomes. flag With JobSeeker recipients at 218,000 by September 2025—above the 190,000 baseline—sanctions may have slowed growth but failed to meet the government’s 2030 target, highlighting structural labor market constraints.

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