A Ministry of Social Development (MSD) assessment has found 99% of the department’s clients are fulfilling their job search responsibilities under the Government’s traffic light system.
Social Development and Employment Minister, Louise Upston said 90% of clients surveyed as part of MSD’s latest evaluation said they found the traffic light system has been helpful for understanding their obligations, which include a range of activities towards finding employment.
“We’re also seeing a 10.6% drop in the number of sanctions issued between the September 2024 and September 2025 quarters,” said Ms Upston.
“The traffic light system was designed to reset the expectations for those on welfare and we now know this reset is having a big impact.”
The traffic light system was introduced in August 2024 and uses traffic light colours to help beneficiaries stay on track with their obligations.
“The system was a cornerstone of our Government’s welfare system reset, which incentivises employment over welfare dependency,” the Minister said.
“The welfare system will continue to support unemployed New Zealanders into work as labour market conditions improve.
“Welfare dependency in New Zealand often begins when young and capable people don’t gain employment.
“The traffic light system ensures the welfare system is more integrated and helps jobseekers understand and navigate their obligations, helping them to be prepared, proactive and seize opportunities when they come along. Welfare is conditional on recipients meeting their responsibilities.”
The evaluation report is available here:Â https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/evaluation/traffic-light-system/tls-evaluation-findings.html.
