In recent years, the Personal Welfare Services sector has experienced favourable operating conditions. The COVID-19 pandemic heightened the focus on health and social services, benefitting the industry through increased government funding and overall demand. Revenue for the Personal Welfare Services industry is expected to grow at an annualised 5.8% over the five years through 2023-24, to total $2.38 billion. New Zealand's economy took a major hit from the COVID-19 pandemic, leading to a significant rise in unemployment and aggravating existing societal problems. Even though the country saw considerable economic growth and lower unemployment rates before the pandemic, multiple negative factors continue to influence demand for personal welfare services. These factors include child poverty, single-parent households and individuals living alone and consequences from substance abuse like family breakdown and domestic violence. This situation has led to a growing need for counselling and child and family welfare services in recent years. The scarcity of affordable housing has also escalated homelessness, resulting in increased utilisation of food banks, soup kitchens and homeless welfare support. In 2023-24, industry revenue is anticipated to rise by 0.6% due to the increasing cost of living and persistent socio-economic inequalities. Despite many businesses being not-for-profit, profit margins are also expected to rise as government spending grows in line with the Wellbeing Budget. Revenue is projected to rise at an annualised 0.2% over the five years through 2028-29 to $2.40 billion. Revenue is set to climb slower than in recent years due to stabilising conditions following the COVID-19 pandemic. Many government investments and initiatives hope to alleviate housing stress and lower rates of homelessness. However, an aging population and the pervasive problem of child poverty will persistently lead to heightened demand for personal welfare services in the approaching years.