In a recent survey conducted by Research New Zealand, the economic struggles facing many New Zealanders have come to light, painting a sobering picture of the current financial landscape. As business confidence sees a slight uptick and interest rates decline, the country is grappling with rising unemployment rates reminiscent of the challenges faced in 2020. The cost of living crisis has hit hard, pushing families onto benefits in unprecedented numbers.
Emanuel Kalafetalis, managing partner at Research New Zealand, shared insights from their survey during a conversation with Jim Mora on Sunday Morning. The study, which interviewed 1004 New Zealanders over 18, delved into the hardships faced by individuals as they grapple with the increasing costs of essentials like transport, food, clothing, as well as ongoing bills such as rent, power, water, and internet.
Struggles to Cover Basic Needs
The survey results revealed a stark reality for many Kiwis, with over 55 percent reporting difficulties in paying for at least one essential item or bill. This translates to nearly one in every two individuals facing challenges in meeting basic needs. Among the hardest hit were young adults and young families, with women experiencing greater financial strain compared to men.
Healthcare vs. Food Costs
A notable finding from the survey was the trend of individuals cutting back on healthcare expenses in favor of meeting their food bills. Kalafetalis highlighted that 33 percent of respondents had either forgone or struggled to seek medical help when feeling unwell. This trade-off between healthcare and food expenses sheds light on the tough choices many are forced to make in order to make ends meet.
Struggles Across Various Categories
The survey also identified specific areas where individuals were facing financial hardships. A significant portion of respondents, around 31 percent, found it challenging to purchase basic goods like clothing or school supplies. Transport costs emerged as another financial burden, with 29 percent struggling to cover this expense. Additionally, 26 percent reported difficulties in paying their rent or mortgage, while 24 percent found it hard to afford essential food items and groceries.
Looking Towards the Future
Comparing the current survey results to data from a year prior, Kalafetalis noted that the financial situation has not shown significant improvement. The stagnant conditions indicate a lack of progress in easing the financial burdens faced by many New Zealanders. Despite some positive economic indicators, the reality on the ground suggests that a substantial portion of the population is still grappling with financial challenges.
As the country navigates these economic uncertainties, the findings from the survey shed light on the real struggles faced by individuals and families. The need for targeted support and interventions to alleviate the burden of rising costs and financial pressures is evident. Moving forward, a concerted effort from policymakers, businesses, and communities will be essential in ensuring a more stable and prosperous future for all New Zealanders. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.