Social Development Minister Paula Bennett says lower wages for young people remain on the table as the Government looks at combating youth unemployment.
Speaking at Parliament's social services select committee, Ms Bennett, who's also Employment Minister, said 17,000 young people on benefits is "17,000 too many".
She says the government is looking at a "range of initiatives" to cut that number.
Unions are concerned young people could be paid as little as eight dollars an hour doing the same jobs as older workers.
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