New Zealand Regions Face Uneven Economic Realities

Disparities Widen as Some Areas Struggle While Others Thrive

Recent economic headwinds have impacted New Zealanders differently, creating a patchwork of prosperity across the country. While some regions are demonstrating resilience, others are grappling with unemployment, affordability challenges, and declining economic activity. According to Stats NZ, the national unemployment rate currently sits at 3.9% as of March 2024, highlighting the varying experiences across the country.

Wellington Remains a Stronghold

Despite government spending cuts, the Wellington region continues to lead in income levels. Stats NZ data reveals a median weekly income of $2870 last year, making it the highest in the nation. Approximately 30% of Wellington’s population holds a degree-level qualification or higher. However, the region’s GDP per capita is $92,776, and unemployment, while historically low, is now at 4.8%.

Housing affordability in Wellington has improved significantly, with prices down 25.1% from their peak. Shamubeel Eaqub noted that regional prosperity is driven by economic opportunities.

Northland Faces Significant Challenges

In contrast to Wellington, Northland is grappling with substantial economic difficulties. The average household income in Northland is $123,900, and its GDP per capita is $54,796. Nearly 11% of the population relies on JobSeeker support, the highest rate in the country. The Far North District is particularly affected, with 57% of its population falling into the two most deprived deciles according to Otago University’s deprivation index.

Eaqub emphasized that Northland’s isolation contributes to its economic struggles, suggesting improved road access to Auckland could boost incomes and opportunities.

Regional Variations Highlight Economic Divide

The Bay of Plenty shows a mixed picture, with an average household income of $134,100 and rents dropping 2.9% in April. However, Kawerau faces significant deprivation, with 78% of its population in the most deprived deciles. Tauranga stands out as the least affordable main centre, requiring 51.6% of median household income for mortgage repayments.

Taranaki is experiencing a tough year, with construction activity weakening and employment dropping 2.5%. Canterbury, however, is a stronger performer, with a 6.9% increase in spending in May. Southland offers relatively affordable housing, with mortgage repayments requiring less than 25% of median income in Grey District.

These regional disparities underscore the need for targeted economic development strategies to address the unique challenges faced by different parts of New Zealand.