New Zealand

Learn even more about New Zealand at oecd.org

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indicator	value	unit
Population	4.7	mil.
Visitors per year	2.6	mil.
Renewable energy	38.3	%

How’s Life?

New Zealand performs well in many dimensions of well-being relative to other countries in the Better Life Index. New Zealand outperforms the average in income, jobs, education, health, environmental quality, social connections, civic engagement and life satisfaction. These assessments are based on available selected data.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In New Zealand, the average household net-adjusted disposable income per capita is USD 39 024 a year, more than the OECD average of USD 30 490 a year.

In terms of employment, about 77% of people aged 15 to 64 in New Zealand have a paid job, above the OECD employment average of 66%. Some 81% of men are in paid work, compared with 72% of women. In New Zealand, 14% of employees work very long hours in paid work, above the OECD average of 10%, with 19% of men working very long hours in paid work compared with 9% of women.

Good education and skills are important requisites for finding a job. In New Zealand, 81% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%. However, completion varies between men and women, as 80% of men have successfully completed high school compared with 82% of women. In terms of the quality of the education system, the average student scored 503 in reading literacy, maths and science in the OECD's Programme for International Student Assessment (PISA). This score is higher than the OECD average of 488. On average in New Zealand, girls outperformed boys by 6 points, slightly above the average OECD gap of 5 points.

In terms of health, life expectancy at birth in New Zealand is around 82 years, one year higher than the OECD average of 81 years. Life expectancy for women is 84 years, compared with 80 for men. The level of atmospheric PM2.5 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 6 micrograms per cubic meter, below the OECD average of 14 micrograms per cubic meter. In New Zealand, 85% of people say they are satisfied with the quality of their water, slightly higher than the OECD average of 84%.

Concerning the public sphere, there is a strong sense of community and high levels of civic participation in New Zealand, where 95% of people believe that they know someone they could rely on in time of need, more than the OECD average of 91%. Voter turnout, a measure of citizens' participation in the political process, was 82% during recent elections, higher than the OECD average of 69%. Social and economic status can affect voting rates; voter turnout for the top 20% of the population is an estimated 87% and for the bottom 20% it is an estimated 83%.

When asked to rate their general satisfaction with life on a scale from 0 to 10, New Zealanders gave it a 7.3 grade on average, higher than the OECD average of 6.7.

For more information on estimates and years of reference, see FAQ section and BLI database.

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OECD in Action

OECD Economic Surveys: New Zealand

OECD’s periodic surveys of the New Zealand economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.

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Decarbonising Urban Mobility with Land Use and Transport Policies: The Case of Auckland, New Zealand

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New Zealand OECD Skills Strategy 2019

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Mental Health and Work: New Zealand

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New Zealand in Detail

Housing – New Zealand expand

Key Findings

Living in satisfactory housing conditions is one of the most important aspects of people's lives. Housing is essential to meet basic needs, such as shelter, but it is not just a question of four walls and a roof. Housing should offer a place to sleep and rest where people feel safe and have privacy and personal space; somewhere they can raise a family. All of these elements help make a house a home. And of course there is the question whether people can afford adequate housing.

Housing costs take up a large share of the household budget and represent the largest single expenditure for many individuals and families, by the time you add up elements such as rent, gas, electricity, water, furniture or repairs. In New Zealand, households on average spend 26% of their gross adjusted disposable income on keeping a roof over their heads, the highest in the OECD, where the average is 20%.

In addition to housing costs 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 children's development. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In New Zealand, the average home contains 2.4 rooms per person, more than the OECD average of 1.8 rooms per person and one of the highest rates in the OECD.

Better Policies for Better Lives

Keeping houses warm

The energy performance of New Zealand’s bulding stock is generally low. In 2009-16, the flagship Warm Up New Zealand programmes had an overall budget of USD 350 million to provide households with subsidies for improving house insulation and heating. The programmes helped retrofit nearly 300 000 homes (or nearly 20% of the housing stock), about half of which were occupied by low-income households. As from 2016, the programme has focused on insulation of rental properties occupied by low-income tenants with priority health needs related to cold and damp housing. The 2016 Residential Tenancies Amendment Act introduced stricter floor and roof insulation requirements for rented homes and social housing.

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How's Life?: Measuring Well-being

Indicators

Income – New Zealand expand

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, health care and housing.

Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. In New Zealand, the average household net-adjusted disposable income per capita is 39 024 a year, higher than the OECD average of USD 30 490.

Household net wealth is the total value of a household's financial and non-financial worth such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In New Zealand, the average household net wealth is USD 514 162, higher than the OECD average of USD 323 960.

For more information on estimates and years of reference, see FAQ section and BLI database

Better Policies for Better Lives

Preventing poverty in old age

Average poverty rates for the elderly fell from 15.1% in 2007 to 12.8% in 2010 in OECD countries, despite the crisis. Many countries undertook reforms to improve pension coverage and safety net benefits to fight poverty in old age more effectively.

New Zealand, for instance, has experienced a substantial increase in coverage thanks to the introduction of automatic enrolment in pension savings and government subsidies. Concerned that New Zealanders were not saving enough for their retirement through private arrangements, the government introduced KiwiSaver on 1 July 2007. KiwiSaver is a government-subsidised voluntary retirement saving scheme with contributions divided between employees and employers. KiwiSaver members receive a lump sum, not a pension, on withdrawal at age 65 or over. The default contribution rate increased from 4% to 6% of earnings in 2013.

Employees starting a new job are enrolled automatically with the option to opt out. Before the introduction of the KiwiSaver scheme, pension saving coverage had declined to less than 10% of the working-age population. Around 67% of New Zealanders aged 18-64 were active or provisional KiwiSaver members by July 2014.

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How's Life?: Measuring Well-being

Indicators

Jobs – New Zealand expand

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, about 77% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 66%.

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 0.4%, lower than the OECD average of 1.3%.

The wages and other monetary benefits that come with employment are an important aspect of job quality. In New Zealand people earn USD 45 269 per year on average, less than the OECD average of USD 49 165.

Another essential factor of employment quality is job security, in terms of expected loss of earnings when someone becomes unemployed. This includes how likely you are to lose your job, how long you are likely to remain unemployed and how much financial assistance you can expect from government. Workers facing a high risk of job loss are more vulnerable, especially in countries with smaller social safety nets. In New Zealand, workers face an expected 4.5% loss of earnings if they become unemployed, below the OECD average of 5.1%.

For more information on estimates and years of reference, see FAQ section and BLI database.

Better Policies for Better Lives

Branding New Zealand abroad

One important initiative has been the creation of a web-based database in which persons interested in migrating to New Zealand can register their interest. By 2014, more than 200 000 migrant candidates have registered for this database which is integrated into the broader "New Zealand Now" portal (www.newzealandnow.govt.nz) that provides a wide range of information about working, living and studying in the country. Migrant candidates who have registered in the database also receive other information about New Zealand, including on recruitment fairs which are regularly organised by Immigration New Zealand in the main origin countries. Registered employers have access to this candidate database via the "Skill Finder". This free service allows employers to search the candidate database by occupation, level of academic qualification, residence and years of experience. They then register their vacancy and submit a request to the Immigration New Zealand marketing team who will work within the following business days with the employer to format a formal request to the candidates in the database they identified as suitable. Recipients can then apply for the position by sending their CV directly to the employer via a special web account set up for this purpose. Only skilled or shortage occupations are eligible.

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How's Life?: Measuring Well-being OECD Job Quality Database

Indicators

Community – New Zealand expand

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. In New Zealand, 95% of people believe that they know someone they could rely on in a time of need, more than the OECD average of 91%.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations.

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How's Life?: Measuring Well-being OECD Insights: Human Capital

Indicators

Education – New Zealand expand

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. Having a good education greatly improves the likelihood of finding a job and earning enough money. People in New Zealand can expect to go through 17.5 years of education between the ages of 5 and 39, in line with the OECD average of 18 years.

Graduating from upper secondary education has become increasingly important in all countries, as the skills needed in the labour market are becoming more knowledge-based. 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, 81% of adults aged 25-64 have completed upper secondary education, higher than the OECD average of 79%.

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 2018, PISA focused on examining students’ reading ability, skills in maths and level in sciences, as research shows that these skills are more reliable predictors of economic and social well-being than the number of years spent in school.

The average student in New Zealand scored 503 in reading literacy, maths and sciences, above the OECD average of 488. The best-performing school systems manage to provide high-quality education to all students.

Better Policies for Better Lives

Networks for better outcomes

The Learning and Change Networks strategy brings schools, kura (Maori-language immersion schools), communities, professional providers and ministry officials together to improve schooling, blended learning and cultural responsiveness. First piloted in 2012 with 5 networks representing 45 schools and kuras, the strategy now includes about 55 networks involving around one-fifth of all schools and kuras. By removing, rather than creating, silos these networks bring New Zealand closer to achieving targets for student achievement. A key goal is to reach near universal achievement of the National Certificate of Education Achievement Level 2 qualification by 18-year-olds by 2021.

New teaching roles

To improve achievement for all students, New Zealand introduced in 2015 four new roles within schools: Executive Principal, Expert Teacher, Lead Teacher and Change Principal. The roles provide teachers with opportunities for advancement within the classroom and embed a system-wide means of sharing expertise across schools. Each role attracts significant additional remuneration for a fixed term (apart from Lead Teachers, which are permanent roles) and helps recognise the most effective teachers and principals. The roles are underpinned by professional standards.

Communities of schools work together to identify and strive to achieve specific objectives. Each community of schools has an Executive Principal and an allocation of Expert and Lead Teachers.

In addition to these new roles, all schools are given additional funding to provide classroom release time so that teachers can work with the expert and lead teachers on professional practice.

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How's Life?: Measuring Well-being

Indicators

Environment – New Zealand expand

Key Findings

The quality of our local living environment has a direct impact on our health and well-being. Outdoor air pollution is one important environmental issue that directly affects the quality of people's lives. Despite national and international interventions and decreases in major pollutant emissions, the health impacts of urban air pollution continue to worsen, with air pollution set to become the top environmental cause of premature mortality globally by 2050. 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.

PM2.5 – 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, PM2.5 levels are 6 micrograms per cubic meter, one of the lowest levels in the OECD where the average is 14 micrograms per cubic meter and lower than the annual guideline limit of 10 micrograms per cubic meter set by the World Health Organization.

Access to clean water is fundamental to human well-being. Despite significant progress in OECD countries in reducing water pollution, improvements in freshwater quality are not always easy to discern. In New Zealand, 85% of people say they are satisfied with water quality, slightly higher than the OECD average of 84%.

Better Policies for Better Lives

Restoring the water quality of New Zealand’s largest lake

The water quality of Taupō Lake, a UNESCO World Heritage Site, had been consistently decreasing since the 1970s; elevated nitrogen levels from intensified pastoral land use was causing proliferation of microscopic algae, reducing water clarity and increasing the growth of weeds in near shore areas.

In response to the worsening water quality, the government, regional authorities and the local indigenous people implemented an innovative policy package, comprising three components: i) a cap on nitrogen emission levels within the Lake Taupō catchment, calculated from the national nitrogen model OVERSEER®; ii) establishment of the Taupō nitrogen market; and iii) formation of the Lake Taupō Protection Trust to help fund the initiative. The policy package was implemented in 2011, after 11 years of public consultation to come to an agreement. The ability to trade through the establishment of the Taupō nitrogen market was a critical part of the negotiations; farmers wanted flexibility and ability to increase production, or to receive direct financial benefits for reducing nutrient losses. The Lake Taupō Protection Trust reduced the local economic and social impacts of the nitrogen cap by buying back some allocated nitrogen discharge allowances and purchasing farms to shift them to low-nitrogen activities permanently, however this came at a significant cost to the public (NZD 79 million). New lower-nitrogen ventures are emerging in the catchment, such as growing olives, farming dairy sheep, and producing and marketing “sustainable” beef. The environmental certainty enables development of added-value products with credible green branding. The policy package has also generated other positive environmental impacts, particularly carbon sequestration from the reforestation of more than 5 000 ha of land to pine plantations.

The market has provided the flexibility for land to move to its highest value use, while achieving the overall 20% nitrogen load reduction target. The goal is to restore water quality and clarity to 2001 levels by 2080. However, it is too early to assess the impact on water quality due to the considerable time lags between nutrient application to land and its eventual arrival in the lake via groundwater (greater than 100 years in some parts of the catchment).

More Resources

How's Life?: Measuring Well-being OECD Environmental Outlook to 2050

Indicators

Governance – New Zealand expand

Key Findings

Trust in government is essential for social cohesion and well-being. High voter turnout is a measure of citizens' participation in the political process. In the most recent elections for which data are available, voter turnout in New Zealand was 82% of those registered. This figure is higher than the OECD average of 69%.

Broader public engagement in the decision-making process is also important for holding the government to account and maintaining confidence in public institutions. The formal process for public engagement in developing laws and regulations is one way to measure the extent to which people can become involved in government decisions on key issues that affect their lives. In New Zealand, the level of stakeholder engagement in developing regulations is 2.5 (on a scale between 0 and 4); higher than the OECD average of 2.1.

For more information on estimates and years of reference, see FAQ section and BLI database.

Better Policies for Better Lives

Citizen participation in policy

People can find out about ways to participate in decision making at the national level and in their local communities from a single government website (http://newzealand.govt.nz/participate/have-your-say).

The "Great New Zealand Science Project" (http://www.mbie.govt.nz/info-services/science-innovation) for example is a government initiative to encourage New Zealanders to make submissions on the areas of scientific research they perceived to be the most important. Ten key projects were identified and the government has committed NZD 133.5 million over four years.

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How's Life?: Measuring Well-being Regulatory Policy Outlook: New Zealand

Indicators

Health – New Zealand expand

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. Life expectancy at birth in New Zealand stands at 82 years, one year above the OECD average of 81 years. Higher life expectancy is generally associated with higher health care spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors).

When asked "How is your health in general?" 86% of people in New Zealand reported to be in good health, much more than the OECD average of 68% and one of the highest scores across the OECD. Despite the subjective nature of this question, answers have been found to be a good predictor of people's future health care use. Gender, age and social status may affect answers to this question.

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How's Life?: Measuring Well-being

Indicators

Life Satisfaction – New Zealand expand

Key Findings

Happiness or subjective well-being 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 objective data to compare the quality of life across countries.

Life satisfaction measures how people evaluate their life as a whole rather than their current feelings. When asked to rate their general satisfaction with life on a scale from 0 to 10, New Zealanders on average gave it a 7.3 grade, higher than the OECD average of 6.7.

Better Policies for Better Lives

Measuring national and regional well-being

New Zealand's Social Report (published in 2010 and 2015) provides a comparative assessment of national and regional well-being by analysing health, knowledge and skills, jobs, economic standards of living, civil and political rights, cultural identity, leisure, safety and social connectedness.

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How's Life?: Measuring Well-being

Indicators

Safety – New Zealand expand

Key Findings

Personal security is a core element for the well-being of individuals. Do you feel safe out walking, alone at night, for example? In New Zealand, 66% of people say that they feel safe walking alone at night, less than the OECD average of 74%.

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, lower than the OECD average of 2.6.

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How's Life?: Measuring Well-being

Indicators

Work-Life Balance – New Zealand expand

Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. The ability to successfully combine work, family commitments and personal life is important for the well-being of all members in a household. Governments can help to address the issue by encouraging supportive and flexible working practices, making it easier for parents to strike a better balance between work and home life.

An 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, jeopardise safety and increase stress. However, in New Zealand, some 14% of employees work very long hours in paid work, more than the OECD average of 10%.

The more people work, the less time they have to spend on other activities, such as time with others, leisure activities, eating or sleeping. The amount and quality of leisure time is important for people's overall well-being, and can bring additional physical and mental health benefits. In New Zealand, full-time workers devote 62% of their day on average, or 14.9 hours, to personal care (eating, sleeping, etc.) and leisure (socialising with friends and family, hobbies, games, computer and television use, etc.) – slightly less than the OECD average of 15 hours.

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How's Life?: Measuring Well-being