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flag New Zealand’s color-coded welfare system boosted jobseeker compliance, cut sanctions, and supports work transitions with added services and incentives.

flag New Zealand’s traffic light welfare system, launched in August 2024, has improved jobseekers’ compliance with employment obligations, with 90% of surveyed recipients finding it helpful and nearly 99% meeting their requirements. flag Sanctions dropped 10.6% between September 2024 and September 2025. flag The system, part of a broader reform, uses color-coded feedback to clarify responsibilities and supports jobseekers through expanded services like phone case management, job coaches, and work seminars. flag A $1,000 bonus was introduced for young people transitioning to sustained employment. flag The government aims to reduce Jobseeker Support recipients by 50,000 by 2030, emphasizing that welfare is conditional on meeting responsibilities.

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