New Zealand may be out of a recession but damage has already been done to the welfare of children and teenagers, a new report by the Salvation Army says.
The worst of the recession may be over in financial terms, but social benefits of a decade of economic growth had been erased in less than two years, Salvation Army social policy director Major Campbell Roberts said.
A jobless economic recovery threatened to further erode gains made in alleviating childhood poverty.
"It is important that we see any economic recovery in people terms rather than just as business confidence indicators and GDP figures."
The Salvation Army's 2010 State of the Nation report, A Road to Recovery, released today estimated the number of children living in benefit dependent households had increased by 12 percent during 2009 to 21 percent of children - more than 231,000.
Mr Roberts said nearly 30,000 more children were living in jobless households than two years ago.
"It's becoming apparent that with the downturn of employment there is a real danger of a growing underclass of children living in material hardship.
"There is now an urgent need to consider some form of universal income entitlement for children."
It was also concerning that the number of solo parent households receiving the domestic purposes benefit had nearly risen back to levels of 10 years ago, Mr Roberts said.
In December 1999, 110,300 households received the DPB, which fell to just over 96,000 by mid 2007, but had risen to 109,300 by December 2009.
Young workers had been severely hit by the recession with 45,000 fewer teenagers aged 15-19 employed than in late 2007, Mr Roberts said.
In the December quarter unemployment for that age group hit 26 percent.
"While the Government's employment initiatives targeting youth unemployment are most welcome, it is clear they are not of sufficient scale to put even a dent in the problem.
"Failing to address youth unemployment means we are faced with the potential time bomb of resentment and disaffection which will show up in rising youth crime, youth suicides and anti-social behaviour."
The report, the army's third of its kind, tracked social progress across five areas: children, work and incomes, crime and punishment, social hazards, and housing.
NZPA