Kiwis Not Expecting More Pay in Their Pockets

64% of New Zealanders believe a pay rise is not on the cards this year announced seek.co.nz today.

Despite both consumer and business confidence being on the rise, Kiwis do not expect to reap the benefits of economic improvement just yet with the majority saying they do not envisage a boost to their pay packets in 2013. What’s more, one third of New Zealanders have not received a pay increase during the last two years.

“Consumers are now feeling more positive about the long term outlook for the New Zealand economy and business confidence is at a five year high. However, we’re yet to see these signs of growing financial optimism spill over into wage growth which remains subdued for roles advertised on SEEK at just 1% in the year to July 2013,” says Janet Faulding, general manager SEEK New Zealand.

While strong salary growth and job creation are yet to be seen across the board, some industries are faring better than others with growing momentum in the housing market and construction sector in particular boosting figures.

Construction roles enjoyed the strongest wage growth over the last 12 months with the average salary for jobs in the industry growing by over $6,000 from July 2012. The construction industry is also boosting national job figures with vacancies up 46%, compared to a 6% rise in jobs nationally, in the same time frame.

“The construction industry has been showing signs of healthy development for some time but the good news now is that business indicators are pointing to imminent improvements in many more areas,” says Ms Faulding.

“Expectations of the majority of respondents to BNZ’s most recent Business Confidence Survey are that the local economy will be in better shape in a year’s time than it is now. Combining this predicted improvement with forecast GDP growth of 2.4%[1], we anticipate wage inflation to build and broaden over the next six to eighteen months,” she concludes.

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