New Zealand’s welfare system is under mounting pressure as mental health issues drive a record number of people out of the workforce. Reported by Stuff.
Nearly 90,000 working-age Kiwis are now on benefits due to psychiatric conditions such as depression, anxiety, and trauma — making mental distress the leading health-related cause for welfare dependence.
According to Ministry of Social Development (MSD) data obtained under the Official Information Act, many of those affected are young and unlikely to return to stable employment.
MSD analysis reveals that beneficiaries under 25 are projected to spend at least 20 years of their working life on welfare, underscoring growing social and economic vulnerability.
The data comes as the National-led Government pushes for tougher welfare policies.
Social Development Minister Louise Upston has pledged to reduce the number of beneficiaries by 50,000 within six years through increased sanctions and a stronger emphasis on personal responsibility to encourage a return to work.
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