25 May 2021

Economist says unemployment insurance won't be cheap

From Morning Report, 6:18 am on 25 May 2021

An economist says an unemployment insurance scheme won't be cheap - but it will be an important lifeline for people who lose their jobs.

The government is mooting an ACC-style scheme, covering 80 percent of someone's income for a limited time, if they end up out of work.

Official documents from the Ministry of Social Development estimate the cost at anywhere between $450 million and $5 billion a year.

Social issues reporter Sarah Robson asked Infometrics senior economist Brad Olsen whether that seems reasonable.