A considerable urban drift toward Port Moresby and other major centers has occurred in recent years. The trend toward urbanization accelerated in the 1990s, bringing in its wake squatter settlements, ethnic disputes, unemployment, and attendant social problems, especially violent crime.

Almost two-thirds of the population is Christian. Of these, more than 700,000 are Catholic, more than 500,000 Lutheran, and the balance are members of other Protestant denominations. Although the major churches are under indigenous leadership, a large number of missionaries remain in the country. The bulk of the estimated 2,500 Americans resident in Papua New Guinea are missionaries and their families. The non-Christian portion of the indigenous population practices a wide variety of religions that are an integral part of traditional culture, mainly animism (spirit worship) and ancestor cults.

Foreign residents are just over 1% of the population. More than half are Australian; others are from the United Kingdom, New Zealand, the Philippines, and the United States, most of whom are missionaries. Since independence, about 900 foreigners have become naturalized citizens.

The traditional Papua New Guinea social structure includes the following characteristics:
The practice of subsistence economy;
Recognition of bonds of kinship with obligations extending beyond the immediate family group;
Generally egalitarian relationships with an emphasis on acquired, rather than inherited, status; and
A strong attachment of the people to land.
Most Papua New Guineans still adhere strongly to this traditional social structure, which has its roots in village life.