Cost-of-living crisis fuels mental health struggles among New Zealand workers
Cost-of-living crisis fuels mental health struggles among New Zealand workers | Insurance Business New Zealand
Life & Health
Cost-of-living crisis fuels mental health struggles among New Zealand workers
Report highlights employers’ role in supporting workforce’s mental and physical health
Life & Health
By
Roxanne Libatique
A recent survey by nib New Zealand and the Employers and Manufacturers Association (EMA) has highlighted growing concerns among New Zealand workers about their mental and physical health, due to the ongoing cost-of-living pressures.
The 2024 Workplace Wellbeing survey, which collected responses from 1,229 employees between May 1 and May 22, revealed that 80% of respondents have been negatively impacted by the current economic climate.
Impacts of cost-of-living pressures on mental and physical health
Mental health emerged as a key issue, with 56% of participants expressing concern over their personal mental wellbeing, while 52% worried about the risk of burnout at work. Additionally, 64% of respondents reported concerns about the mental health and wellbeing of their family members.
The findings showed a notable increase in health-related concerns compared to previous years. Among those affected by the rising cost of living, 50% indicated their mental health had worsened, while 26% said their physical health had deteriorated.
Younger workers, particularly those aged 16 to 30, appear to be more vulnerable, with 63% of this group reporting a decline in mental wellbeing.
Rob Hennin, chief executive of nib New Zealand, noted the growing pressures faced by the workforce.
“Compared to our previous survey, seeing how many of these concerns have increased is confronting and shows the pressures those in the New Zealand workforce face,” he said.
Employers address workforce mental and physical health issues
Despite these challenges, the survey revealed that many employers are taking steps to support employee wellbeing.
Approximately 61% of respondents stated that their workplace is actively managing wellbeing, an increase from 53% in 2022. There were also improvements in areas such as understaffing, work-life balance, and the pressure to work extended hours.
Alan McDonald, head of advocacy at EMA, acknowledged the difficult economic environment but pointed out the positive actions by employers.
“The current economic environment is hitting both employers and employees hard. Given the challenges many businesses face, it is encouraging to see that employers are stepping up and focussing on the wellbeing of their staff,” he said.
Importance of improving wellbeing support in the workplace
The survey also highlighted the importance of strong support systems in the workplace.
With 22% of respondents having sought new employment and 17% looking for additional jobs in the three months leading up to the survey, largely due to financial pressures, there is a clear need for employers to bolster support for employee wellbeing.
Interest in Employee Assistance Programmes (EAP) has risen, with 60% of respondents finding these programs valuable, up from 54% in 2022.
Hennin stressed the critical role of employers in supporting their workforce’s mental and physical health.
“Fostering this positive workplace culture starts from the top down, so it’s just as important for business leaders to embody these values in their day-to-day,” he said.
Insurance considered as important employee benefit
When considering a job change, benefits such as medical and health insurance, income protection illness cover, and life insurance are increasingly significant to employees.
The survey found that 64% of respondents prioritise medical and health insurance, with 48% looking for more comprehensive insurance options, such as income protection.
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