Seven out of 10 Kiwis feeling recession pinch
Aug 26th, 2009 | By Newswire Team | Category: Front Page Layout, Latest News, NewsTHOSE who say the recession is over need to think again – 75% of people surveyed by NewsWire say it has hit them or changed their spending.
Our poll of 543 people in the Wellington region showed the recession is costing jobs and income, preventing saving, stopping people going out, and stemming spending on food, big ticket items and holidays.
Key results from the random phone poll conducted this week by 27 Whitireia Journalism School students are:
- 4% recently lost their jobs;
- 14% report a drop in income;
- 6% are working fewer hours;
- 18% have cut the amount they spend on food;
- 10% are not saving;
- 16% have cut out big purchases;
- 12% are not dining out any more;
- 9% will dispense with their usual overseas holiday;
- 4% have switched to public transport.

“The recession has changed the way we do business – increased stress and tension at work,” one of those called said. “But not my pay-packet.”
“I’m retired and places I had invested in and was getting my income from have gone belly up,” said another.
And: “My income dropped significantly, so my wife has forced me to stop buying when I see something I like.”

And: “We’ve always been careful with money so that’s made the recession easier.”
Responses broken down by age bracket show that in general those between 30 and 50 have been most hit by the recession.
The younger and older age brackets have been comparatively less affected, with those in the 65+ the least affected in all but two categories – they’re saving less and more of them are now using public transport.
Job losses and working hours
Some 4.1% have lost their job, with the biggest loss seen in the 41-50 age bracket, which accounted for 40% of the total.
The effect is considerably less for 18-30 year olds.
Of the 6.17% who are working fewer hours, the numbers affected were spread evenly across the 18-50 age bracket.
“I lost my job in a way. My hours were dropped to a level where I couldn’t afford to work there any more.”
“My son has lost his job, so I’m making sure I’m in a position to help if needed,” said one man.
“It was a big loss to my self esteem to lose my job,” said a woman respondent.
Drop in income
Of the 14.23% of respondents who said their income had dropped, most were in the 31-40 and 41-50 age brackets.
“It has affected me because I have less money due to work and overtime opportunities,” said one respondent.
“It hasn’t affected my income yet, but it has affected how I spend my money,” said another.
“I normally get a company bonus but this year because our company is not doing so well I don’t get the $3000 bonus for this year; this is money my family rely on.”
And: “My son turned 18 last week and I’m on the benefit, so because he is now 18 I get less than $300 in the hand each week. ”
And: “I’m in a commissions-based role and what I get has dropped by 2%, I lose out on $700-$800 a year now.”
Spending less on food
Of the 18% of respondents who said they were spending less on food, the 31- 40 age bracket was affected the most.
“My income hasn’t changed, but food prices have meant I have to buy smarter now,” said one.
Another: “Last week I had to go to the food bank in order to make ends meet.”
Going out less
Young people have not let the recession affect their social lives, with only a small number saying they are going out less.
“It hasn’t affected me. I’m a student so things are tight anyway,” said one.
However, 31-50s say they are spending a night in rather than have a night on the town.
Saving less
The middle aged are finding the recession is leaving them with less money to put aside for a rainy day, with many saying they were saving less.
Comments included: “We lost some money with Bridgecorp.”
Big purchases cut
New Zealanders are buying fewer flat screen TVs and other big ticket items as the recession bites.
Nearly a third of those who are cutting back on big purchase were those aged 31-40.
“We had heaps of plans for the house and we are still doing the roof, but everything else is cancelled,” said one respondent.
And: “Well, we want to buy another house, so it’s gonna affect the amount we get for this one.”
Not dining out
Grandpa and grandma aren’t letting the recession get in the way of a nice dinner out, with very few saying they were dining out less.
No overseas hols
The older set are not letting the recession get in the way of their Caribbean cruise, with few saying they were cutting back on overseas travel.
Shifted to public transport
The middle aged and elderly dominated the small group who reported they had switched to public transport.
“I catch a bus now. I never used to, but it’s so I can save money,” said one person.
The poll asked people two questions:
- How have you been affected by the recession?
- How has the recession changed your behaviour?
The survey required 832 phone calls to residential landlines chosen randomly from the Wellington
white pages.
Some 534 agreed to talk to us. In 98 cases there was no answer or we got an answer machine. Another 135 declined to participate – some very rudely.



























