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Workers in Northland struggle as wages lag behind living costs

Workers in Northland struggle as wages lag behind living costs

NZ Herald27-04-2025
Megan Hepi, who has worked in social services in Kaikohe for seven years helping whānau get jobs and access to services, said people were struggling on very low wages.
'People are working their hearts out.
'Everything has gone up - rent, food, everything - but wages haven't.
'They're living in situations that are not ideal ... unhealthy and unstable situations.'
Hepi said it was whakama [embarrassing] for people to talk about having to move back with parents, with whānau, or seek alternative living arrangements.
'I've seen people who have worked all their lives forced to move into temporary accommodation.'
The Northern Advocate recently revealed that landlords are exiting Northland's property market due to rising costs, while tenants are struggling to find affordable homes to rent.
The median rent is now $585 a week in Northland.
Hepi, now an independent contractor, said one woman on a sickness benefit pays $450 a week for a tiny flat, leaving her with $140 to scrape by.
Some days, she can't afford food or to keep the lights on at night, Hepi said, and she has even resorted to asking strangers and friends for money.
Hepi said many people don't have a driver's licence or cars, and getting jobs in nearby towns comes with hefty travel costs.
'It's extremely hard for some whānau here to get ahead.'
Northland's population is now 194,007, 8.3% more people than 2018, according to Census 2023.
About 89,520 people are in work. The top industries are construction, healthcare, retail, agriculture, forestry, fishing, education, and manufacturing.
Only 11% of those working earn $70,001 to $100,000.
Of the working population, 15% earn between $50,001 and $70,000, and a whopping 66% earn $50,000 or less.
Why is Northland's median income so low?
Infometrics principal economist and lead demographer Nick Brunsdon said the $33,100 takes into account income from everyone over the age of 15.
That's a whole bunch of people in different circumstances, Brunsdon said.
They include retirees on New Zealand Super, which is $20,000 each for couples and $32,000 for singles.
Another category which makes up 6% of the figure, is no income at all. For example, 16-year-old high school students.
'There's quite a few people in those situations where they've got low income per person,' Brunsdon said.
'Job seekers are probably on around $20k or lower – in that situation that brings down the median.'
Brunsdon said the percentage of people on unemployment benefits - including jobseekers, sole parents, and supported living - is higher in Northland: 29% compared to 20% nationally.
Northland consistently has the highest proportion of its population on unemployment benefits.
According to the Ministry of Social Development, 11% of Northland's working age population – that's 12,327 people - were receiving Jobseeker Support in February.
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That's significantly more than the next-highest region, Gisborne, which was 9.4%.
Brunsdon said another factor bringing down Northland's median income was that people who are in work earn about 12% less than the national average.
While he couldn't pinpoint what types of jobs this relates to: 'We do know the nature of Northland's economy is more reliant on lower paying industries'.
'At the other end of the scale, Auckland and Wellington have a lot more higher paying industries like professional services, government, and finance.'
Kaitāia Family Budgeting Services senior financial mentor Tania Sneddon said: 'The struggle is real'.
Sneddon said there had been 'a huge increase' in KiwiSaver hardship applications, along with Good Shepherd loans aimed at helping people on limited incomes pay for essentials that improve their quality of life.
'There is no answer at the moment,' Sneddon said.
'The working poor are up there, the beneficiaries are there, but they have the option of asking for assistance.
'It's harder for the working poor purely because they may not be eligible for a loan or have family to help them.'
Sneddon said some people were using Afterpay to buy essential items like petrol, food, and pet food.
Her advice to struggling Northlanders is: 'Come and see us'.
'We're here to teach people to do this for themselves.
'We have people whose power is about to be disconnected, or their car dispossessed.
'The minute they start struggling, they should come and see us; it could be a simple conversation. We're here to help.'
Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with finance, roading, lifestyle, and animal welfare issues.
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