Risks

40. Māori employment and other economic activity is concentrated in sectors which are particularly exposed to international developments. Overall the Māori working population is also younger and less qualified than other groups, increasing the risks of job losses and reducing wage bargaining power. Māori would also potentially be affected both as consumers and as employees if there were reductions in public spending in specific sectors with a strong Māori presence, for example in the provision of health services.
41. This has consequent risks for Māori incomes and living standards, including housing. Basic costs such as food and power increased in the December quarter Consumer Price Index released 20 January 2009. On-going pressure on rentals will make it even more difficult for low income Māori to achieve good quality housing. Māori are already under-represented in home ownership figures and over-represented in rental accommodation figures. The recession is likely to accentuate these trends and consolidate the inter-generational effects of low home ownership rates.