The unaffordability of housing is the primary cause in reducing overall quality of life in Guernsey, according to the latest Better Life Indicators report.
Compared to a list of other developed jurisdictions, Guernsey ranked well in most categories, but was determined to be the worst of all the regions when it comes to housing costs, with islanders spending a significantly higher percentage of their disposable income on housing expenditure.
The Better Life Indicators report is released annually by the States, featuring an analysis of local data according to frameworks established by the Organisation for Economic Co-operation and Development, in an effort to determine quality of life on the island.
‘It provides an overall impression of living conditions in Guernsey, which is intended to help give an objective view of the effectiveness of the policies of the States and help highlight areas that need attention,’ said the States in the report.
The categories included in the OECD’s Better Life Index are household income, employment, long-term unemployment, housing expenditure, life expectancy, self-reported health, the homicide rate, voter turnout and self-reported life satisfaction.
Although some of the data used is fully updated – as of 2024 – the States admits that other parts of the data are incomplete or dated.
‘It is hoped that this report can still usefully inform the public, States members and any proposed changes to the policy priorities or work streams of the States,’ they wrote.
Household income
Of the jurisdictions featured in the report, Guernsey ranked fifth for household income, even though the island’s income data has not been updated since 2022, unlike that of most other countries.
The same 2022 data was used in the 2023 Better Life Indicators report, at which point Guernsey ranked third against the same 33 nations.
The 2024 report ranks the island behind the United States, Luxembourg, Germany and Switzerland, documenting the net disposable income per capita as £30,960. If that figure were to have increased by the UK inflation rate, it would have become £34,052 at the time of the report.
Household income is a crucial indicator of a population’s ability to access resources to satisfy its basic needs. It can also be a factor with significant impact on an individual’s life satisfaction and perceived self-worth.
Household income on the island has undergone a steady nominal increase but real decrease over the years. While the net disposable income per capita had risen from £27,185 in 2015 to £30,960 in 2022, the 2024 equivalent of the former sum would be more than £2,500 greater than that of the latter.
The report also shows Guernsey’s income figures converted to reflect equivalent purchasing power in dollars, rendering the island’s 2022 figure as $47,536, compared to 2015’s $39,251.
Best: United States
Worst: Costa Rica
Guernsey: Fifth
Employment and long term unemployment
Guernsey’s employment rate has remained fairly high, and the island’s long-term unemployment ranks as one of the best in the world.
The data – fully up to date as of the report – shows that Guernsey has an employment rate of 72.4% for those aged 15-64, and 79.3% for those aged 25-64.
These numbers have been fairly stable on the island for some time, being 74.4% and 81.0% respectively in 2019, and 72.7% and 79.8% in 2015.
Guernsey now ranks 21st out of 39 countries for its employment rate, but has a far better ranking when it comes to long-term unemployment, placing fourth lowest.
Long term unemployment is considered by the States to be a period of unemployment lasting for 12 months or more.
The island’s current long term unemployment rate is 0.41%, and has been consistently under 1% for years, having only once breached the 0.5% mark in 2023.
Both rates of employment and unemployment can serve as good indicators of the health of the local economy, and of the population’s engagement in the economy. Unemployment is also closely associated with poor wellbeing.
Best: Iceland
Worst: Turkey
Guernsey: 21st
Housing expenditure
Of all considered jurisdictions, Guernsey has ranked worst for housing expenditure as a proportion of disposable income.
The latest available data is from 2022, and documents housing expenditure on island as being 30.5% of islanders’ disposable income – a figure markedly higher than even the next worst nation’s.
The report uses the definition of housing expenditure characterised as expenditure by households on housing and maintenance, which includes water, fuel, furnishings, household equipment and routine maintenance of the house.
Though not featured in the report, other data released by the States indicates that the average cost of rent in Guernsey is equal to nearly 60% of the median earner’s monthly salary, before tax.
According to the States’ own Residential Property Prices and Stock 2025 reports, rent in Guernsey is now averaging £2,112 per month.
Meanwhile, the most recent statistics on median earnings indicate that the average salary on the island in 2024 was roughly £42,500 – a sum that would, in 2025, be worth around £44,250, were it to increase according to UK inflation rates. This salary translates to a monthly income of £3,687.50 – a figure that is only £1,575.50 more than the average monthly rent.
High cost aside, the OECD report shows that Guernsey does not have a particularly poor housing situation, with much lower rates of household overcrowding than many other developed jurisdictions.
Best: South Korea
Worst: Guernsey
Second worst: Slovak Republic
Life expectancy and health
Guernsey now ranks fifth for life expectancy, coming behind Switzerland, Japan, Spain and Israel, with an average life expectancy from birth of 83.6 years. This is a number that remained more or less stable for quite some time.
Long life expectancy is generally associated with high living standards, and is affected by factors such as the quality of sanitation, diet, health care, working conditions and community support services.
Best: Switzerland
Worst: Mexico
Guernsey: fifth
Self-reported health was last surveyed in the Bailiwick in 2023, wherein 73.2% of people reported their health to be good or very good, compared with the OECD average of 67.5%. This placed Guernsey 11th out of 34 when compared with other OECD countries.
Best: New Zealand
Worst: Japan
Guernsey: 11th
Safety
The homicide rate is another of the official measures used in the Better Life Index but homicides are so rare in Guernsey as to be near negligible. Guernsey placed lowest amongst all ranked jurisdictions for homicides per 100,000.
The 2023 Wellbeing Survey found that 74.6% of the population aged 16 or over felt very safe or fairly safe walking alone after dark, 15.1% felt neither safe or unsafe and 10.3% felt fairly unsafe or very unsafe. The OECD question on this topic required a yes or no response, with average results of 75% saying that they did feel safe and 25% saying that they did not feel safe.
Best: Guernsey
Second best: Ireland
Worst: Mexico
Voter Turnout
Voter turnout gives an indication of the public’s trust in government and of their willingness to participate in their own governance.
72% of people on the electoral roll in Guernsey voted in the 2025 election.
Some jurisdiction compel voting – such as Australia – with varying degrees of enforcement.
In Guernsey, you need both to be eligible
to vote and to put yourself forward to be included on the electoral roll to have the right to vote in an election, whereas inclusion on the roll is automatic in other jurisdictions. Guernsey placed 16th out of 39 countries for this measure.
Best: Australia
Worst: Switzerland
Guernsey: 16th
Life satisfaction
In the 2023 Bailiwick Wellbeing Survey, people were asked to evaluate their life satisfaction on a scale of 0 to 10 – a self-reported indicator of wellbeing comparable with the OECD indicator.
The survey results showed an average life satisfaction score of 6.7.
Best: Mexico
Worst: Turkey
Guernsey: 31st