New Zealand

Did You Know?

Population
4.2
mil.
Visitors per year
2.5
mil.
Renewable energy
36.47
%

How’s Life?

New Zealand performs exceptionally well in overall well-being, as shown by the fact that it ranks among the top countries in a large number of topics in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In New Zealand, the average household earned 18 996 USD in 2008, less than the OECD average .

In terms of employment, nearly 72% of people aged 15 to 64 in New Zealand have a paid job. People in New Zealand work 1729 hours a year, close to the OECD average. 75% of mothers are employed after their children begin school, suggesting that women are able to successfully balance family and career.

Having a good education is an important requisite to finding a job. In New Zealand, 72% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, same as the OECD average. New Zealand is a top-performing country in terms of the quality of its educational system. The average student scored 521 out of 600 in reading ability according to the latest PISA student-assessment programme, higher than the OECD average.

In terms of health, life expectancy at birth in New Zealand is 80.4 years, more than one year above the OECD average. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 12 micrograms per cubic meter, and is lower than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community and high levels of civic participation in New Zealand. 97% of people believe that they know someone they could rely on in a time of need, higher than the OECD average of 91%. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 79% during recent elections; this figure is higher than the OECD average of 72%. In regards to crime, only 2% of people reported falling victim to assault over the previous 12 months.

When asked, 77% of people in New Zealand said they were satisfied with their life, above the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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New Zealand in Detail

Housing

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Key Findings

In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. Nearly 66% of occupied dwellings in New Zealand are inhabited by the owners themselves, close to the OECD-23 average of 67%.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In New Zealand, the average home contains 2.3 rooms per person, more than the OECD average of 1.6 rooms per person. In terms of basic facilities, an estimated 0.4% of dwellings in New Zealand lack private access to indoor flushing toilets, much less than the OECD average of 2.8% dwellings.

Data for dwellings without basic facilities in New Zealand rely on OECD estimates. These figures will be updated as official information becomes available.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In New Zealand, the average household net-adjusted disposable income is 18 996 USD a year, lower than the OECD average of 22 284 USD.

Household financial wealth is the total value of a household’s financial worth. In New Zealand, the average household wealth is estimated at 16 131 USD, lower than the OECD average of 36 808 USD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Data for household financial wealth in New Zealand rely on OECD estimates. These figures will be updated as official information becomes available.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In New Zealand, nearly 72% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 65%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In New Zealand, the percentage of the labour force that has been unemployed for a year or longer is currently at 0.6%, much lower than the OECD average.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities.

Conversely, a weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. In New Zealand, 97% of people believe that they know someone they could rely on in a time of need, much higher than the OECD average. Nearly 64% reported having helped a stranger in the last month, also higher than the OECD average.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Across OECD countries, men with university-level degrees are 16% more likely to find jobs, and women are 30% more likely. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market.

In New Zealand, 72% of adults aged 25-64 have earned the equivalent of a high-school degree, close to the OECD average of 73%. However, among younger people – a better indicator of New Zealand’s future – 79% of 25-34 year-olds have earned the equivalent of a high-school degree, also close to the OECD average of 80%.

But graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school.

New Zealand is a top-performing OECD country in reading literacy, with the average student scoring 521 out of 600. This score is higher than the OECD average of 493, making New Zealand the 4th strongest OECD country in reading skills. Additionally, students performed well in mathematics and science, with more than 17% reaching the two highest levels of proficiency.

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In New Zealand, PM10 levels are 11.9 micrograms per cubic meter, much lower than the OECD average of 22 micrograms per cubic meter.

Monitoring data in some urban areas show that PM10 concentrations frequently breach the national air quality standards, often as the result of the use of solid fuels for domestic heating. In 2003, Environment Canterbury launched a NZD 38 million project called Clean Heat to convert 26 400 Christchurch homes to cleaner forms of heating. As of June 2005, heating systems in 3000 houses had been upgraded, with assistance levels varying with household income.

Poor indoor air quality is associated with the exacerbation of respiratory conditions and allergic reactions, particularly among older people, young children and Maori. According to official statistics for 1998, 31% of New Zealand homes used unvented gas heaters burning bottled gas. The health risks associated with this type of heating fall disproportionately on lower socio-economic groups and older people who spend most of their time at home.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. 67% of people in New Zealand say they trust their political institutions, higher than the OECD average of 56%. High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in New Zealand was 79% of those registered. This figure is higher than the OECD average of 72%.

Ensuring that government decision making is not compromised by conflicts of interest is key to maintaining trust in government. Transparency is therefore essential to hold government to account and to maintain confidence in public institutions.

Freedom of information laws (FOI) allows the possibility for individuals to access undisclosed information. For such policies to be successful, the public should have a clear understanding of their rights under the law, should be able to file requests with ease and should be protected against any possible retaliation. People in New Zealand can file a request for information either in writing, online, by telephone or in person – thus greatly facilitating the FOI process. However, there are no provisions for anonymity or protection from retaliation.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. In 2008, life expectancy at birth in New Zealand stood at 80.4 years, more than one year above the OECD average of 79 years.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Health spending was estimated at 9.8% of GDP in New Zealand in 2008, higher than the OECD average of 9.0%. New Zealand ranks below the OECD average in terms of health spending per person, with spending of 2683 USD in 2008, compared with an OECD average of 3060 USD.

Throughout the OECD, tobacco consumption and excessive weight gain remain two important risk factors for many chronic diseases.

Smoking rates among adults in New Zealand have decreased from 30.0% in 1985 to 18.1% in 2007, a rate lower than the OECD average of 23.3%, and sixth lowest among OECD countries.

The obesity rate among adults, based on actual measures of height and weight, was 26.5% in 2007. It is lower than in the United States (33.8% in 2008) and Mexico (30.0% in 2006), but higher than all other OECD countries for which measured data are available. The average for the 13 OECD countries with measured data was 21.0% in 2008. Obesity’s growing prevalence foreshadows increases in the occurrence of health problems (such as diabetes, cardiovascular diseases and asthma), and higher health care costs in the future.

When asked, "How is your health in general?", 90% of people in New Zealand reported to be in good health, much higher than the OECD average of 69% and the highest rate in the OECD. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For New Zealand, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 77% were satisfied with their life and 86% believe that their life will be satisfying five years later.

 

78% of people in New Zealand reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is higher than the OECD average of 72%, and makes New Zealand one of the happiest countries in the OECD.

 

 

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In New Zealand, only 2% of people reported falling victim to assault over the previous 12 months, lower than the OECD average of 4%. 30% of people feel unsafe on the street after dark, higher than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, New Zealand’s homicide rate is 1.3, slightly lower than the OECD average.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In New Zealand, 75% of mothers are employed after their children begin school; this figure is higher than the OECD average of 66% and suggests that mothers are able to successfully balance family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in New Zealand work 1729 hours a year, lower than the OECD average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in New Zealand devote 63% of their day, or 15.1 hours, to personal care (eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – close to the OECD average.

Better Policies for Better Lives

High fertility and female employment rates, but challenges for single parents

New Zealand has experienced a steady growth in the female employment rate, which currently stands at 67%, well above the OECD average of 57%. Rising female employment has been coupled with rising wages for women too; the gender-wage gap, at 8%, is currently the 3rd lowest in the OECD, and half the OECD average. The total fertility rate has also increased over the last decade and is now well above the OECD average of 1.74 children per woman. High fertility and female employment rates in New Zealand, suggest overall compatibility between work and family life. However, Maori and Pacific ethnic groups combine high fertility rates with much lower female employment rates.

Although the overall spending per child fell between 2003 and 2007, there has been a welcome increase in early-childhood spending and childcare provision. The increase in spending on children aged 0-5 years as a share of spending on all children was one of the largest in the OECD.

Overall, child outcomes in New Zealand are mixed: the child poverty rate, at 12.2%, is around the 12.7% OECD average, infant deaths have fallen while proportion of low-weight births has also decreased. PISA reading scores are the fourth highest in the OECD. But the proportion of older children not in education or employment, at 9.3 is higher than the OECD average of 8.0%.

A good package of policies, including flexible workplace practices and affordable early childhood care and education services, helps New Zealand families to reconcile work and family and female life. Part-time work is a common working practice used by New Zealand mothers who reduce their working hours when their child is young but return to full-time work when the child starts school.

Indicators

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