Financial stress, crumbling institutional trust, and rising isolation are pulling New Zealanders apart, a new report from The Helen Clark Foundation reveals.
The second annual Social Cohesion in New Zealand report found the country’s social fabric is fraying on almost every measure. The survey of nearly 3,000 New Zealanders is the second instalment of what is now an annual tracking programme, enabling year-on-year comparisons for the first time.
"The results are both frightening and hopeful,” economist and co-author Shambeel Eaqub says. “New Zealand still has strong foundations, but there are growing cracks in how people experience fairness, opportunity and connection. Financial stress is the dominant driver.” The steepest declines were in beliefs about fairness and institutional integrity in New Zealand. Trust in the government dropped from 42% to 39%. The share of people believing hard work leads to a better life fell 7 points to 45%. Attitudes toward immigration are becoming more negative, mirroring trends seen internationally.
Drawing on two full years of survey data - more than 5,500 responses - the report identifies three distinct groups of New Zealanders:
● The Connected (30%): High levels of belonging, institutional trust, and acceptance of others.
● The Ambivalent (41%): Moderate belonging but low participation. Includes most older homeowners, retirees, and centre-right voters.
● The Alienated (28%): Disconnected from institutions and conventional civic life, but often actively engaged in protest and online political activity. Almost half of Māori and Pasifika respondents fall into this group, as do nearly half of Green voters and seven in ten NZ First voters.
“We have three very different New Zealands living alongside each other. Financial stress, political allegiance, institutional distrust, and social isolation are reinforcing each other, producing a population that is frustrated and disconnecting from the conventional institutions we rely on for collective decision-making,” Eaqub says.
The research finds financial stress is the single biggest driver of low social cohesion. People struggling to make ends meet are significantly less likely to feel connected, trust institutions, or participate in community life. At the same time, loneliness and isolation are rising. “Isolation doesn’t mean people disengage entirely,” Eaqub says. “But it does change how they participate - away from traditional institutions and toward more oppositional or online forms of engagement.”
What needs to change?
The report is not without cause for optimism. Over 80% of New Zealanders feel a sense of national belonging and pride in the New Zealand way of life - figures that have held steady year on year. Young New Zealanders are more aspirational than any other age group, even as they experience the worst social cohesion outcomes. The Foundation is calling for a more coordinated, long-term approach to social cohesion - including aligning economic and social policy, and investing in sustained community initiatives rather than short-term programmes.
“Social cohesion isn’t a ‘nice to have’ - it’s what allows a country to make difficult decisions and navigate long-term challenges,” Eaqub says. “It happens when communities have the support and conditions to solve problems together, manage differences, and care for each other over time. If we want a resilient, inclusive New Zealand, strengthening social cohesion is vital.”
