KEY POINTS:
The pay gap between the rich and poor has shrunk for the first time in 20 years, according to a new report on the nation's social wellbeing.
But the Ministry of Social Development's 2008 Social Report also shows that housing affordability has worsened and there has
been a marginal decline in the number of people engaged in tertiary study.
The annual report, released today, shows that at the end of 2007 a household edging into the top 20 per cent of income earners is 2.6 times better off than one sitting at the top edge of the bottom 20 per cent.
That is a fall from 2.7 per cent last year and the first fall since 1988, when the ratio sat at 2.2 per cent.
The report, which is compiled from a range of previously released statistics, also says there are fewer people living on lower incomes than 10 years ago.
In 2007, 13 per cent of people were deemed to living on low incomes compared with 22 per cent in 1997. Low incomes were defined as below 60 per cent of median income.
It says that between 2004 and 2007 incomes for low and middle income households grew strongly while incomes for the top 40 per cent grew by only 2 to 4 per cent.
Social Development Minister Ruth Dyson put the closing income gap down to the Government's Working For Families packages which boosts incomes for families with children.
MSD deputy chief executive Don Gray said historically low unemployment, which sat at 3.6 per cent at the end of 2007, was also a major factor.
Mr Gray said over the long-term social outcomes were improving. Several indicators also pointing to a reducing gap between Maori and Pacific Islanders and other groups, but the gaps in many areas were still large.
New Zealand surpassed or equalled the median among rich countries in two thirds of internationally comparable 22 indicators.
Findings in brief:
Improved
* income gap between rich and poor;
* proportion of people living on low incomes;
* unemployment (at end of 2007, but has since increased);
* employment;
* qualifications at bachelors degree level or above;
* qualifications for school leavers;
* median hourly earnings;
* life expectancy;
* smoking rates.
Worsened
* housing affordability;
* tertiary participation;
* road deaths and injuries;
* deaths from assaults;
* local election voter turnout;
No change
* obesity;
* perceived corruption in New Zealand;
* potentially hazardous driving;
* attainment of adults at upper secondary education or above.
Ms Dyson said the report showed New Zealanders overall wellbeing was improving.
"Overall this report shows that New Zealand's social wellbeing has made great strides in the past few years."
Maori Affairs Minister Parekura Horomia said Maori also fared well in the report, with good gains in life expectancy, school qualifications and tertiary participation.
- NZPA