Population growth affects citizens perceptions of community strength, identity and cohesion

Introduction to Demographics Information on the demographic makeup of New Zealand s six largest cities is critical to understanding the nature of urban communities and how they are changing. Factors such as age, ethnicity, income, and migration are often key determinants of outcomes across a whole range of issues. What s in this chapter? Indicators include: Population growth Age structure Social deprivation Net external migration Household composition Low income families with children Ethnicity Income There is very little socio-demographic data available either at the six-city level, or able to be broken down further (for example, by ethnicity). Therefore, most of the data within this chapter comes from the 1996 Census. Impacts and relationships with other areas in this report This chapter describes the differences and disparities between population groups within and between the six largest cities and the rest of New Zealand. The pace of change within cities and the diversity of people impacts on outcomes in all chapters of this report. For example: Income is a key determinant of health outcomes. Population growth affects citizens perceptions of community strength, identity and cohesion Financial and social deprivation affects the ability of individuals and communities to access services, facilities and networks that provide adequate social support. Age structure within cities is a key determinant of the future supply of the workforce which, linked with qualification rates and industry structures, gives an insight in to future training needs and the match between employment needs and the likely local labour force. Changing patterns of household composition (e.g. more than two families living in a household) have implications for health outcomes. Key points There are vast differences in the socio-demographic makeup of New Zealand s six largest cities, but all share the common factor of being large urbanised areas, with inherent impacts on physical and social infrastructure. Furthermore, the populations within these cities are expected to grow - it is estimated that 9% of New Zealand s total population growth in the next twenty years will take place in the North Island, with the four cities of Auckland accounting for more than half of the projected population growth. Some characteristics of the socio-demographic makeup of New Zealand s six largest cities include: ethnic diversity within and between cities increasing income inequality population ageing, especially within the European population an increasing number of children living in low-income families, with Maori, Pacific Islands and Asian children over-represented in comparison with their proportion within the general population. Existing issues such as inequality and social deprivation are likely to have marked impacts on outcomes in other sectors, both now and into the future. Demographics Introduction to Demographics 11

Population Growth What this is about New Zealand has one of the most highly urbanised populations in the world. 1 In 1996, over one third (39%) of New Zealand s population lived in the six largest cities (approximately 1,444, people). Tracking population growth in our major cities ensures that funding, services and facilities are provided to meet the needs of fast growing communities. This indicator highlights the fast pace of growth in cities, especially in the Auckland Region. What did we find? Between 1991 and 1996 population growth in New Zealand averaged around 7.2%, with increased immigration being a key contributor. During this period, the rate of population growth in the four largest cities within the Auckland Region was double that for the rest of New Zealand. This trend has continued, with growth in the Auckland Region for the twelve months to June 2 estimated to be three times higher than the average national growth. For the six largest cities, the average annual population growth between 1991 and 1996 was around 2.2% spurred not only by immigration but from natural population increases and internal migration flows. 2 Approximately 135, new people moved into New Zealand s six largest cities between 1991 and 1996. Whilst the Auckland Region received more overseas immigrants than internal migrants (people moving from within New Zealand), the opposite was true in both Wellington and Canterbury Regions where internal migration was a more dominant force. AGE POPULATION GROWTH, BY CITY (1991 TO 1996) 14 12 1 13 13 13 14 8 6 4 6 7 5 2 NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH REST OF NZ Although population growth has generally slowed since the last Census, it is estimated that a further 134,451 people have made New Zealand s six largest cities their home since 1996. 3 Two thirds of the nation s population growth has taken place in the six cities, with the rest of New Zealand growing by around 4% in the 1996 to 2 period. 1 Professor Richard Bedford. 1997. Population Change and Urban Expansion and Infrastructure. Paper presented to the NZ Population Conference. 2 Fertility rates in Manukau, Auckland and Waitakere Cities are relatively high. This reflects the population age structure and higher proportions of Maori and Pacific Islands people (populations that tend to have higher fertility rates). 3 Calculated from Statistics New Zealand estimates for 3 June 2. 12 Quality of Life

POPULATION COUNTS, BY CITY (1996 TO 2) 1996 (Number) 2 ( June estimate) Auckland 345,768 386,1 Manukau 254,278 286,7 North Shore 172,164 189,7 Waitakere 155,565 174,1 Wellington 157,646 167,4 Christchurch 39,28 324,9 It is estimated that 9% of New Zealand s total population growth in the next twenty years will take place in the North Island, with the four cities of Auckland accounting for more than half of the growth. Manukau is expected to become New Zealand s second largest city by around 213 (currently Christchurch). 4 POPULATION PROJECTIONS TO 221, BY CITY Year Auckland Manukau North Shore Waitakere Wellington Christchurch 21 391, 29,9 192, 176,4 169,1 327, 26 416,5 314,5 25,2 19,2 173,9 336,5 211 441,5 336, 218, 23,3 178, 344,5 216 466,5 357,5 23,4 216,4 182, 352, 221 492, 38, 242,6 229,8 185,9 358,5 (median projections, based on 1996 baseline) Net External Migration What this is about Net external migration is the number of overseas arrivals into each city less the number of overseas departures. The indicator highlights the number of New Zealand nationals and migrants arriving and leaving the six largest cities and provides an insight into the relative attractiveness of working and living in this country. What did we find? The four largest cities in the Auckland Region saw more people arrive than leave in the 198s. However, this was not the case in Wellington and Christchurch where there was a net migration loss until 1991, consistent with national trends. Between 1991 and 1996, the net external migration trend reversed, with all six cities experiencing significant net gains. Auckland and Christchurch City had the biggest increases over this time. The main reason for the change between 1991 and 1996 was the increasing level of immigration. For example, in 1996 around 5% of all new immigrants were living in the Auckland Region. 4 Len Cook. 1997. New Zealand Current and Future Population Dynamics. Presentation to the NZ Population Conference. Population Growth/Migration 13

The Auckland Region wasn t the only city influenced by immigration during the 199s. Some cities and regions undertook targeted marketing campaigns to attract new residents during the mid 199s. For example Christchurch City went from a net external migration loss of 42 people to a net external migration increase of 12,59. External migration flows, both nationally and into the six largest cities, have slowed considerably in the last five years. For the first time since 199, overall departures exceeded arrivals in 1999, resulting in a net outflow of 14, people from New Zealand. 5 Since 1995, there has been a downward trend for permanent and long-term migrant arrivals. For example, in 1999 there were 26% less permanent and long term migrant arrivals in the six largest cities than in 1996. NET EXTERNAL MIGRATION TRENDS, BY CITY (1981 TO 2) NUMBER OF PEOPLE 3, 25, 2, 15, 1, 5, -5, NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH -1, 1981-86 1986-91 1991-96 1999-2 Immigrants into New Zealand tend to come from the same countries. Since 1996, Australia and the United Kingdom (UK) have been the most common source countries. However, it should be noted that New Zealanders returning home are also included in these figures and are likely to have a significant impact on results. COUNTRY OF LAST RESIDENCE 6 FOR PERMANENT AND LONG TERM ARRIVALS INTO NEW ZEALAND, BY CITY (1996 TO 1999) Ranking #1 Ranking #2 Ranking #3 Ranking #4 Ranking #5 Auckland UK Australia Japan China India Manukau Australia UK Western Samoa Hong Kong Taiwan North Shore UK Australia South Africa Taiwan Japan Waitakere Australia UK China Western Samoa Hong Kong Wellington UK Australia USA Japan India Christchurch UK Australia Japan Taiwan Malaysia 5 Statistics New Zealand. 1999. Demographic Trends. Wellington. 6 Country of last residence does not necessarily indicate that the individual is a citizen of that country. 14 Quality of Life

Ethnicity What this is about Ethnicity is identification with those who share racial, linguistic, religious and other traits. Ethnic identity is recognised as involving personal identity and individual perception and choice. In the 1996 Census, respondents could choose more than one ethnicity and over 15% of New Zealanders indicated that they belonged to more than one ethnic group. This figure is up significantly from 5% at the 1991 Census. 7 This indicator outlines proportions of the main umbrella ethnic groupings within each city and the rest of New Zealand. Within each of these broad ethnic groupings there are many smaller ethnic populations, each with its own age structure, customs, and settlement history in New Zealand. At the 1996 Census there were more than 2 separate ethnic identities recorded nationally, although fewer than 3 had more than 4, members. Ethnic diversity brings with it a wide range of languages, cultural values, and spiritual beliefs. Increasing ethnic diversity has implications for the range of services that need to be provided and for the way they are provided. What did we find? The ethnic composition of the six largest cities is varied. For example, while North Shore and Christchurch Cities have relatively large proportions of Europeans, others - such as Manukau and Auckland Cities - are more diverse. Compared to the rest of New Zealand, the six largest cities have a higher proportion of Asian and Pacific Islands residents. With the exception of Manukau City, the six largest cities have a smaller comparative Maori population. In 1996, Auckland City was home to the highest number of Asian residents and Manukau City was home to the highest number of Pacific Islands and Maori people. ETHNIC COMPOSITION OF NEW ZEALAND S SIX LARGEST CITIES (1996) 8 1 12.5 12. 9.1 9.5 2.5 8.4 2.5 7.1 6.4 1.4 13. 8.6 4.7 7.7 4.1 1.9 6.9 2. 2. 17. 58.9 16.8 47.3 77.7 64.6 73.8 83.6 75. ASIAN PACIFIC ISLAND NZ MAORI EUROPEAN NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH REST OF NZ 7 Data on ethnic identity used in this report has undergone a system of prioritising multiple responses in order to allow them to total 1%. Responses are prioritised in this order Maori, Pacific People, Asian, Other and European. For example, those who indicated both Maori and European ethnic identity in their Census form have been counted here as Maori. 8 Data for Other ethnic groups has not been included in this graph as the numbers are very small that is, less than 1%. Ethnicity 15

CHANGES IN ETHNIC IDENTITY People identifying as European within the six largest cities decreased from 82.5% in 1991 to 79.6% in 1996, whereas the proportion of other ethnic identities increased. The most pronounced decrease was recorded in North Shore City, from 87.8% to 77.7%. The overall proportion of New Zealanders identifying as Maori increased from 12.9% in 1991 to 14.5% in 1996, a rise of 1.6%. 9 Waitakere recorded the largest increase in Maori, from 15,474 in 1991 to 2,181 in 1996. Nationally, the number of persons identifying as Pacific Islanders increased by 35, in the inter-censal period. There was a slight increase in the six largest cities with the exception of Auckland City, which experienced a 1% decrease in the proportion of persons identifying as Pacific Islanders. The fastest growing ethnic population between 1991 and 1996 was Asian, which rose from 99,759 to 173,52 nationally, a rise of 73%. The proportion of Asian residents increased between 1991 and 1996 in all six cities, especially those in the Auckland Region. For example, the relative proportion in Auckland City rose from 7.9% in 1991 to 12.5% in 1996. This was largely due to immigration. CHARACTERISTICS OF ETHNIC GROUPS IN NEW ZEALAND (1991 TO 1996) Census population Population Belonging to Aged Born Median change more than under 5 overseas age 1991 1996 1991-96 one ethnic years (%) (%) (number) (number) (%) group (%) European 2,783,25 2,879,85 3.5 17.3 7.3 13.7 34.6 Maori 434,847 523,371 2.4 47.8 13.7 1.4 21.4 Pacific Island 167,7 22,233 21. 38.6 15.1 42.2 2.4 Asian 99,759 173,52 73.9 18.5 8.7 74.7 26.6 Total 3,373,926 3,618,3 7.2 15.5 7.7 17.5 33. PROJECTIONS FOR MAORI AND PACIFIC ISLANDS POPULATIONS Medium range projections prepared by Statistics New Zealand estimate that both the Maori and Pacific Islands populations in New Zealand will continue to grow. Maori Within the participating cities, the largest Maori population growth is expected to occur in Manukau City. By 216, it is estimated that Manukau will increase by 18,3 Maori - an increase of 41% since 1996. The cities of Waitakere, Christchurch and Auckland are also expected to undergo considerable growth within this ethnic group. Pacific Islands Considerable growth within the Pacific Islands population in New Zealand is expected in the next quarter of a century. This growth will be particularly strong in Manukau City, where there will be an anticipated increase of 31,8 Pacific Islands residents by the year 216 - an increase of 58% since 1996. The cities of Waitakere and Auckland are also predicted to undergo growth in this ethnic group, but on a smaller scale. 9 Some of this increase may be due to the different way that the ethnicity question was framed in the 1996 Census. 16 Quality of Life

PROJECTED GROWTH WITHIN ETHNIC GROUPINGS, BY CITY (1996 TO 216) 7, 63,4 MAORI 1, 86,7 PACIFIC ISLANDS NUMBER OF PEOPLE 6, 5, 4, 3, 2, 1, 33,5 1996 216 NUMBER OF PEOPLE NORTH SHORE WAITAKERE 41,7 WELLINGTON CHRISTCHURCH 45,1 12,9 17,7 21,2 8, 6, 4, 2, 1996 216 NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH 31,6 12,8 15,2 22,5 32,4 44, 58,7 54,9 4,6 7,8 17, 29, 7,8 1,1 6,3 1,3 (based on 1996 data, medium projections) OVERSEAS BORN POPULATION According to the 1996 Census there were 65,61 overseas born people living in New Zealand. Almost three in every four New Zealanders born in the UK or Ireland, and over half of those born in Europe, had lived here for 2 years or more. Of those born in Asian and South African countries, over half had been in New Zealand for less than five years. The most urbanised of the new immigrants were the Asian and Pacific Island born with more than 98% living in urban areas. LANGUAGES SPOKEN In New Zealand, 13% of the population speak two or more languages. Of those who do speak two or more languages, 52% live in New Zealand s six largest cities. Manukau and Auckland appear to be the most multilingual cities in New Zealand, with around 21% of Auckland residents and 23% of Manukau residents speaking two or more languages. Across the cities, the wards with the highest percentage of people speaking two or more languages were: Otara Ward (Manukau) 38% Mangere Ward (Manukau) 34% Mt Roskill Ward (Auckland) 26% Tamaki Ward (Auckland) 26%. FIVE MOST COMMON LANGUAGES SPOKEN (OTHER THAN ENGLISH), BY REGION (1996) Total Population 1st 2nd 3rd 4th 5th Auckland 1,68,645 Samoan NZ Maori Cantonese Chinese Tongan French Region (46,851) (31,98) (21,696) (16,527) (15,48) Wellington 414,48 NZ Maori Samoan French German Cantonese Chinese Region (14,931) (13,572) (7,89) (4,998) (4,41) Canterbury 468,39 NZ Maori French German Dutch Samoan Region (7,974) (6,219) (4,68) (4,233) (3,564) Ethnicity 17

Age Structure What this is about This indicator focuses on the age structure across New Zealand s six largest cities. The age structure of a community is one of its fundamental characteristics and impacts on the range of services, facilities and opportunities that need to be planned for and provided at a local level - that is, different things need to be provided for different age groups. What did we find? New Zealand has a higher proportion of children than in many other industrialised nations. In 1996, 23% of New Zealand s population was under the age of 15 years. In 1996 North Shore, Auckland and Christchurch Cities had the largest proportions of people aged 65 years and over, while Manukau and Waitakere Cities had the largest proportions of those aged under 19 years. There are higher proportions of people aged 2 to 44 years living in the six largest cities than in the rest of New Zealand. This is due to work, income and educational opportunities being greater in New Zealand s largest urban areas. Wellington City had the largest proportion of residents aged between 2 and 44 years (nearly half of its population at 46.9%) compared with 38.1% for Manukau City and 39.1% for North Shore City. AGE STRUCTURE WITHIN NEW ZEALAND S SIX LARGEST CITIES (1996) 1 11.4 8.3 11.4 8.4 8.8 13.6 12.3 18.2 18.8 21.6 18.6 18.9 19.8 2.4 43.4 38.1 39.1 41. 46.9 39.7 36.2 OVER 65 YRS 45-64 YRS 19.8 25.5 21.3 23.1 18.7 2.5 23.2 2-44 YRS 5-19 YRS 7.2 9.3 6.6 NORTH SHORE 9. 6.7 6.5 7.9 WAITAKERE WELLINGTON CHRISTCHURCH REST OF NZ UNDER 5 YRS THE AGEING OF THE NEW ZEALAND POPULATION Like other nations, New Zealand s population is ageing. At the beginning of the century New Zealand had a very youthful population with half of all citizens below the age of 23 years. Transitions in fertility (e.g. trends towards later child bearing age and smaller families) and mortality (longer lives due to factors such as improved medical treatments) provided the necessary ingredients for the demographic process called population ageing. Nationally, the median age has increased from 29.6 years in 1986 to 33 years in 1996. 1 The ratio of younger people to older people has also halved from 4:1 in 1966 to 2:1 in 1996. 1 With the exception of North Shore and Christchurch Cities, the median age in New Zealand s largest cities tends to be slightly younger than the national median. 18 Quality of Life

CURRENT AND PROJECTED MEDIAN AGE WITHIN NEW ZEALAND S SIX LARGEST CITIES 1996 (yrs) 21 (yrs) 211 (yrs) 221 (yrs) Auckland 32.4 33.9 36.8 38.9 Manukau 29.5 31. 34.1 35.7 North Shore 34.2 35.8 38.9 41.4 Waitakere 31. 32.5 35.2 36.8 Wellington 31.9 33.3 36. 37.7 Christchurch 33.6 35.2 38.9 41.6 AGE AND ETHNICITY The ageing population trend is more specific to the New Zealand European population. Maori, Pacific Islands and Asian populations tend to be younger than NZ European. In 1996, the median age for Maori was 21.4 years, well below the New Zealand median of 33 years. Maori now account for one in every four of all New Zealand children under five years and 23.6% of children under 15 years. The Pacific Islands populations have some of the youngest age structures of any ethnic group within the national population. The median age in 1996 was 2.4 years. Comparing the age structures for the six largest cities to those for the rest of New Zealand, there is a tendency for those aged 5 to 14 years and 45 years and over, to live outside the six largest cities, especially for European and Maori populations. AGE STRUCTURE BY ETHNICITY FOR NEW ZEALAND S SIX LARGEST CITIES (1996) 65 yrs and over 2.2 MAORI 65 yrs and over 3.3 PACIFIC ISLANDS 45-64 yrs 11.2 45-64 yrs 12.2 25-44 yrs 3.5 25-44 yrs 3.8 2-24 yrs 1.7 2-24 yrs 8.9 15-19 yrs 1. 15-19 yrs 9.5 5-14 yrs 21.8 5-14 yrs 21.8 Under 5 yrs 13.6 Under 5 yrs 13.5 1 2 3 4 1 2 3 4 65 yrs and over 2.2 ASIAN 65 yrs and over 13.9 EUROPEAN 45-64 yrs 11.2 45-64 yrs 22.1 25-44 yrs 3.8 25-44 yrs 32.5 2-24 yrs 8.9 2-24 yrs 8.1 15-19 yrs 11.8 15-19 yrs 6.1 5-14 yrs 17. 5-14 yrs 11.3 Under 5 yrs 7.9 Under 5 yrs 6. 1 2 3 4 1 2 3 4 Age Structure 19

Household Composition What this is about Household composition reflects living arrangements within New Zealand households, as measured in the Census. A household for Census purposes comprises the person or persons who reside in a private dwelling, and a family is defined as a husband or wife (in a legal or de-facto marriage) with or without children of any age living in the same dwelling or a sole parent, of any marital status, living with children of any age. 11 Household composition can reflect the impact of changing social trends (e.g. later marriages, lower fertility rates and independent living) as well as economic pressures (such as housing costs, tertiary education fees and incomes) and cultural preferences (eg. extended family and intergenerational living). What did we find? HOUSEHOLD COMPOSITION While most people still live in a family, the 1996 Census detected more people choosing to live alone or in relationships that do not include children. The highest proportions of non-family and one person households are in Wellington and Auckland Cities. This probably reflects the larger numbers of single, professional people and students living in the inner-city areas. The six largest cities have a lower proportion of couple only households when compared to the rest of New Zealand. Compared to the rest of New Zealand, Auckland, Waitakere and Manukau Cities have a much higher rate of two or more families living in the same house. This is may be due to increasing housing costs leading to doubling up of families in one house and may also reflect patterns of intergenerational living common in Maori, Asian and Pacific Islands cultures. In 1996, Manukau City s rate of households with two or more families (7.2%) was three times greater than the rest of New Zealand. HOUSEHOLD COMPOSITION, BY CITY (1996) 1 3.5 7.2 2.5 4.5 1.8 1.6 2 41.4 54.4 48.8 52.6 4.5 42 44.5 2 22 8.3 18.6 13.2 3.5 23.7 17.8 4.8 NORTH SHORE 22.3 24.3 25.9 21 22.9 23.1 2.3 14.9 3.8 9.6 7.1 4.4 WAITAKERE WELLINGTON CHRISTCHURCH REST OF NZ TWO OR MORE FAMILIES ONE FAMILY COUPLE ONLY ONE PERSON NON-FAMILY 11 It is acknowledged that Census based family data reflects predominantly European definitions of nuclear based family structures. Some have argued that this approach does not capture satisfactorily the structures found in present day New Zealand (Shirley, Koopman Boyden, Pool and St. John. 1997. Family Change and family policies: New Zealand.) For example, a grandmother, mother and three children living together in the same house would officially be counted as two families. However, they may view themselves as being one family rather than two. 2 Quality of Life

OF HOUSEHOLDS WITH TWO OR MORE FAMILIES RESIDENT, BY CITY (1991 AND 1996) 8 6 7.2 1991 1996 4 2 2.1 3.5 4.4 1.6 2.5 2.7 4.5 1.2 1.8.9 1.6 1.5 2. NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH REST OF NZ Between 1991 and 1996, the proportion of households with two or more families increased at a rate of at least 5% in the six largest cities, compared to a 3% increase for the rest of New Zealand. AVERAGE HOUSEHOLD SIZE In 1996, the average number of household members nationally was 2.7 people. Four of the six largest cities were at or above this figure, especially Manukau City with an average of 3.4 persons per household. Several wards in the Auckland Region were found to have particularly high average numbers of household members, namely Massey (3.3), Manurewa (3.4), Mangere (4.1) and Otara (4.6). AVERAGE HOUSEHOLD SIZE, BY CITY (1996) Average number of household members Auckland 2.7 Manukau 3.4 North Shore 2.8 Waitakere 3. Wellington 2.6 Christchurch 2.6 Household Composition 21

Income What this is about This section focuses on household and personal income of citizens in the six largest cities and is based on Census data. Income is a key determinant of individual, family and community wellbeing and is the single most important modifiable determinant related to health and quality of life in general. Income levels indicate the ability of citizens to meet their needs and directly correlates with their conditions of health, education, social interaction, housing, leisure and general life style. It should be noted that income data in this section has not been equivalised, that is, it has not been adjusted to take into account household composition. What did we find? MEDIAN HOUSEHOLD INCOME With the exception of Christchurch City, median household income tends to be higher in the six cities than in the rest of New Zealand. This is partly off-set by the higher costs of living in cities. Between 1991 and 1996 there was a national increase in median household income of 12.6%. Most cities followed the national trend, with the exception of Auckland City. In Auckland the median household income for the 1991 to 1996 period increased by 23%, from $34,189 to $42,164 per annum. A possible reason for this was the rapid pace of gentrification 12 across a number of key wards and suburbs bordering the central city, drawing in young upwardly mobile professionals with higher incomes. Large variations within cities are often lost when city wide medians are focussed on. For example, in Christchurch, the 1996 median household for the Fendalton Ward was $4,935, whereas in the Hagley Ward it was only $25,335. Similarly in Manukau City, the Howick Ward had a median household income of $53,28 whereas $36,5 was the median in the Otara Ward. MEDIAN HOUSEHOLD INCOME, BY CITY (1991 AND 1996) 1991 ($) 1996 ($) Auckland 34,189 42,164 Manukau 37,78 42,772 North Shore 41,719 46,997 Waitakere 36,335 41,65 Wellington 46,39 5,998 Christchurch 29,336 32,962 Total New Zealand 3,91 34,825 PERSONAL INCOME ENDS OF THE SCALE In 1996, the median personal income nationally was $15,63 (of all persons aged 15 years and over). 13 There has been much concern at the growing gap between income earners at the lower and upper ends of the scale in recent years. 12 Gentrification is where older areas are renovated and upgraded, usually by more affluent households moving into the area, thus forcing lower income households out of these areas. 13 Personal income data presented in this section covers all income sources, for example from employment, own business, asset ownership, superannuation and capital income. This data covers the general population within the age bracket, including those working, those not working, students and retired people. People who had a zero income are also included. 22 Quality of Life

National income inequality increased substantially between 1986 and 1991, and continues to do so. 14 The proportion of people at the lower end of the income scale outweighs the proportion at the upper end. 15 The cities with a greater relative share of people in the upper income bracket generally also had a lower share of people in the lower income bracket. Of the six largest cities, Wellington had the highest proportion of personal incomes greater than $7, p.a. (7%). This is probably due to the high concentration of professionals living in the capital. It also appears there are more high income earners living in the six largest cities than within the general New Zealand population. In 1996 the proportion of people aged 15-64 years earning less than $2, p.a. in the six cities was higher than in the rest of New Zealand whereas the proportion earning less than $1, p.a. was similar. PROPORTION OF POPULATION AGED 15 YEARS AND OVER IN PERSONAL INCOME BRACKETS, BY CITY (1996) 7 LESS THAN $2, PA 8 $7, PA OR MORE 6 5 4 3 2 1 53 57 51 54 46 61 41 7 6 5 4 3 2 1 6 3 5 2 7 2 2 NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH TOTAL NEW ZEALAND NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH TOTAL NEW ZEALAND Analysis of income by ethnicity indicates that Maori, Pacific Islands and Asian populations are earning less than their European counterparts. However, this income data has not been age standardised and the younger nature of these populations will have an impact on their relative proportions in the various income groups. That is, populations with younger age structures tend to have lower incomes. AGE OF PEOPLE WITHIN EACH ETHNIC GROUP AGED 15 YEARS AND OVER (IN SIX LARGEST CITIES) WITHIN EACH INCOME BRACKET (1996) less than $2, p.a. (%) more than $7, p.a. (%) European 49 5 Maori 58 2 Pacific Islands 65 1 Asian 7 2 The large proportion of the Asian population in the lowest income brackets may be due to the following factors: younger age structure of the Asian population (many young Asian people are studying full time) lower rate of overall labour force participation by the Asian community and difficulties in obtaining employment for many new Asian immigrants undeclared or overseas income a large number of refugees within the Asian ethnic group many Asian families can be seen to be asset rich but cash poor, that is, not generating an income through regular employment. 16 14 Statistics New Zealand. 1999. NZ Now Incomes. 15 Figures at the upper and lower end of the income scale must be treated with some caution, as upper income earners are less likely to respond to income questions and very low income earners sometimes hide income as assets and under report their incomes. 16 It should be noted that there is significant variation in income groupings within the various Asian ethnic communities. Income 23

BENEFITS RECEIVED Government benefit statistics for the six largest cities show how many working age people (those aged between 15 and 65 years) are receiving some sort of government assistance. This data includes all benefits (for example unemployment, student allowances, domestic purposes benefit) except superannuation payments. Across the six largest cities, the largest proportions of beneficiaries were in the 25 to 44 year age group. TOTAL BENEFICIARIES, BY CITY (YEAR TO MAY 2) Number of beneficiaries May 2 % change from May 1999 Auckland 39,919-2.4 North Shore 14,712 13. Manukau 38,47 2.6 Waitakere 2,527-6.7 Wellington 13,913-12.6 Christchurch 42,124-2.9 Data Source: Work and Income New Zealand Maori and Pacific Islands citizens are over-represented in government benefit recipient data for all six cities. However, the opposite is true for European and Asian populations, who are under-represented. Of those people receiving benefits, just over one third have been receiving assistance for more than two years, and of those people, just under 1% are aged 19 to 24 years. Manukau and Waitakere Cities have slightly higher rates than the other cities in this younger age group - probably due to the younger age structure of these cities. NUMBER AND PROPORTION OF BENEFICIARIES RECEIVING BENEFITS FOR TWO OR MORE YEARS, BY CITY (2) Number of beneficiaries receiving benefits for more than 2 years % of beneficiaries receiving benefits for more than 2 years Auckland 14,415 36.1 Manukau 14,664 38.1 North Shore 4,714 32. Waitakere 7,86 34.5 Wellington 4,312 31. Christchurch 14,688 34.9 Data Source: Work and Income New Zealand 24 Quality of Life

Social Deprivation What this is about The New Zealand Social Deprivation Index combines a range of key socio-demographic factors from the 1996 Census and estimates an overall score of material and social deprivation for a particular area, on a scale of 1 (regarded as being least deprived) to 1 (regarded as being the most deprived or experiencing considerable hardship). Social deprivation scores generally reflect the ability of households in an area to achieve positive outcomes in areas such as health, education and employment. Factors included in the Index are: Income: equivalised household income (adjusted for household composition). Income: people aged 18-59 receiving a means tested benefit. Transport: people with no access to a car. Living Space: equivalised household below a bedroom occupancy threshold. Owned home: people not living in own home. Employment: unemployed people aged 18 to 59 years. Qualifications: people aged 18 to 59 years without any qualifications. Support: people aged less than 6 years living in a sole parent family. Communication: people with no access to a telephone. Auckland and Christchurch Cities follow the national pattern. What did we find? North Shore and Wellington Cities also share a similar trendline - with relatively greater proportions of their populations in the less deprived areas. These two cities have more or less the opposite deprivation trendline to Manukau City. Sixty percent of people in North Shore City and 55% of people in Wellington City live in areas ranked 1 to 3 (least deprived) whereas Manukau City has a marked proportion of its population in deciles 9 and 1 (most deprived). In Waitakere City however, a different pattern emerges with a major bulge appearing in deprivation deciles 6 to 8. This reflects a greater share of below average areas - a grouping who have been particularly hard hit by economic and social restructuring over the last ten years. AGE OF POPULATION LIVING IN DEPRIVATION INDEX DECILES, BY CITY (1996) 1 2 3 4 5 6 7 8 9 1 (% least deprived) (% most deprived) Auckland 13 11 1 9 9 9 8 1 9 12 Manukau 12 1 7 6 6 6 8 9 13 21 North Shore 2 2 2 14 11 7 4 3 1 1 Waitakere 9 11 8 1 1 13 16 12 8 3 Wellington 26 15 12 1 9 7 8 6 3 4 Christchurch 13 12 11 11 9 1 8 1 1 6 Data Source: Health Services Research Council Social Deprivation 25

There is considerable variation in Deprivation Index rankings at ward level. The following table notes the wards within the six cities that have the highest proportion of high need areas. WARDS WITHIN THE SIX CITIES WITH THE HIGHEST PROPORTION OF MESHBLOCKS IN DECILES 9 AND 1 (1996) City % of area in decile 9 and 1 Otara Manukau 84 Mangere Manukau 71 Tamaki Auckland 62 Hagley Christchurch 56 Hauraki Gulf Islands Auckland 44 Manurewa Manukau 38 Data Source: Health Services Research Council There are large volumes of people affected by social deprivation within New Zealand s largest urban areas. The New Zealand Deprivation Index indicates that across New Zealand s six largest cities, nearly one quarter of a million people are living in high need areas. For example, although North Shore City has only 2% of its population living within the most deprived areas (deciles 9 & 1), this equates to 3,777 people experiencing deprivation. Low Income Families with Children What this is about Research undertaken by the Family Services Centre in Wellington has estimated that around 6% of median income (adjusted for household composition) is necessary for a family to provide the essentials of food, shelter, clothing, healthcare and transport. 17 For the purpose of this project, family income data has been analysed to ascertain how many families (with children) in the six cities earned less than 6% of the median family income. 18 Financial stress impacts on family relationships and the ability of the family to access a full range of goods, services and opportunities such as leisure, sports, tertiary education, pharmacy prescriptions, and childcare. Children living in families who are financially stressed are likely to have poor outcomes in health and education and are less likely to be able to participate fully in society because of financial constraints. Income inequality is also adversely associated with both mortality and hospitalisation rates. 19 What did we find? Around one fifth of children in families in New Zealand s six largest cities could be said to be living in poverty. In the four largest cities in the Auckland Region, the number of families with children experiencing poverty increased between 1991 and 1996. The rate stayed the same in Wellington (18%) and dropped slightly in Christchurch from 19% to 18%. 17 Waldegrave C, Stephens R and Frater P. 1996. New Zealand Poverty Measurement Project. 18 Within this analysis, income data was segmented into broad income categories in order to estimate the number of families in poverty. For each city, 6% of median family income was calculated. The number of families (with children) in the closest lowest income bracket and below were then assessed. Family income levels have not been equivalised, that is, adjusted for household composition, number and age of children. For example, 6% of 1996 median family income in Wellington was $35,18 the number of families earning less than $3, (the closest income bracket) was calculated. Couple only families and families with non specified income have been excluded from the data set. In all cases, the data reflects a likely underestimate of families with children experiencing financial hardship. 19 Howden-Chapman, Blakely, Blaiklock and Kiro. 2. Closing the Gap. New Zealand Medical Journal. 26 Quality of Life

AGE OF FAMILIES (WITH CHILDREN) EARNING LESS THAN 6% OF MEDIAN FAMILY INCOME, BY CITY (1991 AND 1996) 3 1991 1996 25 2 15 1 24 22 2 2 2 21 18 2 18 18 19 18 5 NORTH SHORE WAITAKERE WELLINGTON CHRISTCHURCH Generally speaking, families with just one child were the most likely to be living in poverty. Nationally, 71% of one parent families received less than $2, each year, compared with 9% of couples with dependent children. 2 With the exception of Manukau, the majority of families with children living in poverty are European, reflecting the predominance of European ethnicities within the six largest cities. 21 However, Maori, Pacific Islands and Asian families with children are over-represented. In 1996, these ethnic groups made up around 29% of the population in the six cities, but comprised 42% of families with children living in hardship. 1991 AGE OF FAMILIES (WITH CHILDREN) EARNING LESS THAN 6% OF MEDIAN FAMILY INCOME, BY ETHNICITY (1991 & 1996) 22 Auckland Manukau North Shore Waitakere Wellington Christchurch n=9399 n=8385 n=5346 n=4539 n=483 n=921 % % % % % % European 41 28 58 58 6 82 NZ Maori 2 34 9 21 16 12 Pacific Island 29 32 4 16 12 3 Asian 8 6 5 4 11 2 1996 n=11382 n=11322 n=6162 n=5685 n=4332 n=8568 % % % % % % European 26 18 43 39 55 73 NZ Maori 13 24 9 17 16 13 Pacific Island 19 26 3 11 11 3 Asian 22 14 2 11 15 1 Looking at proportions of low-income families with children between 1991 and 1996, the general trend was a reduction in the percentage for Maori and Pacific Islands families. However, the relative proportion of Asian families with children who could be seen to be in poverty increased from 6% to 15% in the same period. 2 Statistics New Zealand. 1997. Census 1996: Highlights Income. 21 Ethnicity of family was calculated using ethnic identities of the adults and data on ethnicity used in this analysis has undergone a system of prioritising responses. For example, where one parent identified as Maori and another as European, the family has been categorised as Maori. 22 Figures do not add up to 1% as the Other ethnic category has not been listed. Low Income Families with Children 27