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Labour Market Not Responding to Shortages

Labour Market Not Responding to Shortages

“The labour market does not appear to be responding in any significant way to labour and skill shortages,” said Council of Trade Unions secretary Paul Goulter, today.

Statistics NZ Labour Cost Index and Quarterly Employment Statistics figures on wages released today, show private sector wages increased only by 2.2% over the year, while wages in the public sector increased by 2.5%.

Of those who got an increase in the last quarter the median increase was 3%.

“With predictions of a difficult winter for the economy, it is a real concern for unions if the figures on wage increases for the last year are as good as it gets,” said Paul Goulter.

“There are some fundamental problems in the labour market. Wages are 25% lower than in Australia, many workers are not covered by collective agreements, and women are paid over 15% less than men on an hourly basis’” he said.

“If we are to get growth in GDP per capita to move into the top half of the OECD then real wages need to rise.”

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