Economic » Prosperous Community

All members of our community prosper from a strong and growing economy. A thriving business sector attracts and retains a skilled and productive workforce.

What is Prosperous Community?

A prosperous community is one in which there is a job market in which employment is growing, unemployment is low, incomes are relatively high and evenly distributed and people are well-educated. Having a decent income is a crucial element contributing to quality of life because most basic needs such as food, water, shelter, health care and many forms of recreation have to be purchased. The valuable services resulting from unpaid household and community work also contribute directly to our well-being and prosperity.

The prosperous community outcome is made up of eight indicators that were selected to measure progress towards the outcome definition (shown above). Please see below for the data relating to each of the prosperous community indicators.

City Circular

Prosperous community GPI, 2001-2016

What this means

The prosperous community index of the WR-GPI rose steadily between 2003 and 2008. However, the economic impacts associated with the fall-out from the global financial crisis (GFC) created a sharp reversal of the positive trend at 2008, and the index was negatively affected for the following four years with signs of recovery evident in 2013. A net change for this index between 2001 and 2016 of 5.0%. 

Did you know?

Natural disasters (and the cost of cleaning up after them) actually create an increase in GDP, thus counting natural disasters as a benefit to our economy. From a GPI perspective, natural disasters would be a decline in our well-being

8 Indicators are being used to track Prosperous Community in the Wellington region

Click on each indicator below to access further information


Download Territorial Authority data for these Indicators


Income inequality

Why is this indicator important?

Income equality is often regarded as a measure of the fairness of the society in which we live. A high level of income inequality may be detrimental to the level of social connectedness across society and research has suggested a negative relationship between income inequality and other factors with an influence on well-being such as trust, social mobility, health outcomes, and the rate of imprisonment.

The P80/P20 ratio is calculated as the ratio of the household income at the 80th percentile (i.e. 20% below the wealthiest household) to the household income at the 20th percentile (i.e. 20% above the lowest income household) (Perry, 2005). Overall, as household income inequality increases, the P80/P20 ratio also increases, and therefore the more unequal society is.

P80/P20 ratio of equivalised gross weekly household income, 2007-2015

Findings

  • In the year ending June 2015, the P80/P20 ratio of equivalised gross weekly household income in the Wellington region was 3.8, down from 4.0 in the previous year 2014.
  • Between 2009 and 2015 the ratio continues to fluctuate for the Wellington region. 
  • The ratio has been consistently higher in the Wellington region than for New Zealand overall. The ratio for New Zealand at 2015 was 3.41. The national ratio has also fluctuated across the period 2010-2015.

Income inequality

Definition and data details

Indicator definition

The ratio of the 80th percentile of equivalised disposable household income to the 20th percentile of equivalised disposable household income, when individuals are ranked by their household incomes.

Data Source

Statistics New Zealand

Last updated April 2017

Data points available only from 2009.

Indicators are updated in April and November each year; for those indicators where new data or survey results have become available.

While care has been taken in processing, analysing and extracting information, we cannot guarantee that the information is free from error and we shall not be liable for any loss suffered through the use, directly or indirectly, of any information, product or service.