Housing affordability has worsened and fewer people are studying at tertiary level, according to a new report on the nation's social wellbeing, report Lane Nichols and Michael Fox of Fairfax Media.

On the bright side, the Ministry of Social Development's 2008 Social Report also shows that social outcomes have improved since the mid-1990s with gains across a range of areas, in particular: health, education, employment and economic standard of living.

Minister for Social Development and Employment Ruth Dyson said the findings show New Zealand's overall wellbeing has improved.

"For the first time since 1988 we've seen the gap between the rich and poor close. Working for Families has made a significant impact, providing invaluable assistance for families and creating a more level playing field," said Ruth Dyson.

Key findings of the Social Report show income inequality has decreased, New Zealand is still first equal in the world as the least corrupt nation, Maori have made large strides in attaining tertiary education and life expectancy has increased.

The report also shows we are living healthier lives, workplace safety has improved and more New Zealanders have access to the internet.

However, some indicators show negative trends.

More people are dying on the roads and as a result of assaults while participation in tertiary education and housing affordability has declined.

Ministry deputy chief executive Don Gray said the country's reduced income inequality reflected record-low unemployment rates and robust economic conditions.

"This report shows that New Zealanders wellbeing has improved markedly across numerous fields."

In spite of all the recent job losses, New Zealand still has one of the lowest unemployment rates in the OECD

The social report uses a set of statistical indicators to monitor trends across 10 "domains" or areas of people's lives. Together these domains provide a picture of wellbeing and quality of life in New Zealand.