Press Release
Minister for Social Development and Employment
11 July 2006
For Immediate Release Media Statement
Research shows living standards determined by more than income
New Zealand Living Standards 2004 Report, released today by the Ministry of Social Development, shows that three in four
New Zealanders report having a fairly comfortable to very good living standard.
Sustainable employment, education and assets, along with income, continue to be key to good living standards according
to the research.
“The report shows that a number of key factors contribute to living standards,” Deputy Chief Executive of Social
Development Policy and Knowledge, Marcel Lauzière, said.
“While income can certainly help improve our living standards, this research demonstrates the importance of sustained
employment, higher levels of education, home ownership and other assets.
“People tend to have lower living standards if they have experienced events such as multiple marriage break-ups,
financial or employment shocks, or serious health issues.
“These factors seem to have a cumulative effect. People with up to seven life shocks have a similar average living
standard to those with no life shocks. Eight seems to be the turning point, leading to substantially lower average
living standards and a high likelihood of hardship,” Marcel Lauzière, said.
The report identifies a drop in living standards since 2000 for some groups, particularly beneficiary families with
children, large families, and people with low incomes or few assets.
The research was undertaken in early 2004, prior to the introduction of Working for Families.
“This research confirms the value of Working for Families in targeting New Zealanders whose living standards are under
pressure,” Marcel Lauzière said. “We know that Working for Families has already addressed factors that contributed to
the decrease in living standards, particularly for beneficiary families, and we expect to see the benefits in future
research.
“The research shows that people on benefit have lower living standards than working people with comparable incomes. This
confirms the importance of sustained work for wellbeing,” Marcel Lauzière said.
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