The PM unveiled a new plan to get thousands of young people into work and training.

Moves to push people into employment are failing, with figures showing almost half of the people going off the benefit returned to Work and Income within 18 months.

A new report into 133,000 welfare recipients reveals one in three are earning less than $1180 a month, and many enter low-level training only to remain unemployed.

Partially blamed are work obligations placed on sole parents under the former National-led Government.

Social Development Minister Carmel Sepuloni​, who released the report on Wednesday, said it showed a need for the Government's Mana in Mahi programme – where an initial pilot is offering 150 industry training positions.

GRANT MATTHEW/Fairfax NZ In again, out again: a new report into the welfare system shows poor employment outcomes for half of welfare recipients.

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"It's about making sure that they're going into jobs that can be sustainable, that will be meaningful to them."

The Ministry of Development (MSD) research, begun by National, surveyed people who left the benefit in the year ending June 30, 2014.

It compared benefit exit rates with a similar 2011 study, finding a greater number of Jobseeker Support recipients found work in a slightly improved labour market.

One in three found work earning $1180 a month, an improvement of 2.5 per cent from the prior study.

But after 18 months 45.7 per cent of those who went into employment were back on a benefit, as were 55 per cent of people who left for education or training.

"There was this perception that people were coming off benefit, [but] they weren't actually necessarily going into meaningful sustainable employment," Sepuloni said.

There was a significant increase in sole parents moving into work, a result of "work obligations and case management services" introduced in 2012.

Sole parents are required to find part-time work when their youngest child is three-years-old, and full-time work at 14.

Of the sole parents studied, 66 per cent stayed in work beyond 18 months.

THOMAS MANCH/STUFF Wellington Hospitality Group people and culture manager Ian Bamber, right, and employee Savahna Ham, 23, at the announcement of an Ministry of Social Development report on Wednesday. Ham completed an employment program run by Bamber, getting her in work after four years of unemployment.

Those going into low-level tertiary training was of particular concern, Sepuloni said.

"MSD needs to be working to make sure people get into meaningful training opportunities, as well as employment opportunities."

Mana in Mahi, launched in August, offers wage subsidies to employers who offer industry training to income beneficiaries.

The Government says up to 4000 places for 18 to 24-year-olds will be available by the end of 2019.

MURRAY WILSON/STUFF Social Development Minister Carmel Sepuloni said people could not be pushed off the benefit into any old job.

Wellington Hospitality Group (WHG) joined the programme after running its own scheme and will have six people in work by the end of next week.

WHG people and culture manager Iain Bamber said of the 120 people who entered the group's program 18 months ago, 70 per cent remain employed.

Steven Gordon, 24, is now a duty-manager at one of WHG's bars after being on-and-off the benefit.

"[Work and Income] say, 'go and get work', they don't give you the means to get the work ... If they were to roll a program like this nationwide, you'd probably have half the unemployed you do currently."

Savahna Ham, 23, now works as a chef after four years on the benefit. She said many young people were without opportunities, or were unaware of them.

"Too many of them are get told that they're never going to amount to much."

OFF THE BENEFIT?

- Nearly half return, and are more likely to if male, Māori, under-30 and living in the regions.

- More than half go into five industries - including agriculture and manufacturing - where only one in three earn $1,180 a month.

- More than half, 55 per cent, return to the benefit from education or training.

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