Oscar Kightley: Kiwi quality of life can be a harsh reality

Stuff.co.nz
CHRIS SKELTON / STUFFOscar Kightley says many Kiwis may be surprised out our top-10 world ranking for quality of life as they struggle to make ends meet on minimum wage.

OPINION: New Zealand always seems to make it onto lists ranking the best countries in the world in which to live. We tend to land outside the podium positions, but manage to be there or thereabouts.

The 2019 US News and World Report best countries list has New Zealand ranked ninth in the world for quality of life, the same as last year.

To determine quality of life, researchers measured attributes such as affordability, quality of local job market, economic stability, safety, quality of public education system and quality of the public health system. Aussie finished 7th, Canada and Switzerland are always high up on this list, which is dominated by Scandinavian countries.

123RFThe beautiful version of Aotearoa we sell to the world is one thing - for many Kiwi households though, writes Oscar Kightley, the financial reality isn't so rosy.

The beautiful version of Aotearoa we sell to the world is one thing - for many Kiwi households though, writes Oscar Kightley, the financial reality isn't so rosy.

Still, New Zealand is in the mix and for a little country that's always prided itself (or at least told itself) it punches above its weight on the world stage, this can be comforting confirmation that – repeat after me – we are somebody.

If only there wasn't such a disconnect between our place on those lists, and the reality of actually living here.

For more than a decade, we've had our own internal survey on quality of life. Run by Neilsen, it's paid for by eight councils that cover two thirds of the country, and measures the perceptions of 7000 respondents.

The 2018 survey results are worrying reading, but won't really surprise most who call New Zealand home.

The average household income in New Zealand is $100,000 per year but in Auckland, almost half of households earning between $70,000 and $100,000, struggled to make ends mate and only just had enough money to meet their everyday needs such as accommodation, food, clothing and other necessities. A further 17 per cent in this income bracket said they don't have enough.

In Christchurch – in this income bracket – 34 per cent say they just had enough money to meet their everyday needs. While 11 per cent said they didn't have enough to meet these costs.

Income inequality specialist Max Rashbrooke told Stuff this week, that may seem like a lot of income but it's really just two people on about the living wage.

"The numbers reflected that the benefits of economic growth had been denied not just to the poorest, but also average New Zealanders... It also signals that we are quite a low wage economy and we have been for some time."

The New Zealand Herald last month quoted Stats NZ figures that show New Zealand workers need to earn more than $52,100 before tax each year to be considered an above-average earner. And that's if you're lucky – 40 per ent of our full-time workers are on the minimum wage of $34,320, that's $660 a week.

The median annual income for a New Zealand man working full-time is $56,700 and for a woman that amount is almost 10,000 less at $47,500.

Dr Ganesh Nana, chief economist and executive director of Business and Economic Research told the Herald: "We've got a business model based on low wages. We've had settings in place over the last two to three decades that have minimized wages, and focused on wages as a cost rather than an investment in labour. We've been trying to put a lid on wage costs which supposedly translate into improved profitability and productivity, but that model hasn't worked."

We all know we live in one of the most picturesque countries in the world with snow covered mountains, magnificent fiords, lush forests, rolling hills and beautiful beaches. And we know that, compared to most of the world, we do OK and should be grateful for things that we can often take for granted.

But appreciating those things doesn't really matter when it comes to important things such as, you know – putting food on the table – or even having a house where you could put a table to start with.

As the country's politicians get back to work this week, the government faces a tricky balancing act of taxing, spending, developing and growing this country while dealing with the fact that many Kiwis simply don't feel all that wealthy.

Behind these numbers are hardworking New Zealanders, with and without families, for whom the struggle is actually real.

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