Most workers see little increase in pay rates

Media release

Most workers see little increase in pay rates

“Despite strong growth in the economy over the last year, the median (middle) pay rate has risen only 1.7 percent – just 0.1 percent in real terms”, says CTU economist Bill Rosenberg. “So for most workers, any increase in income will have come from working longer rather than better pay rates.”

“The average wage recorded in the New Zealand Income Survey rose by 2.7 percent, pushed up by the rise in the minimum wage and more people working full time according to Statistics New Zealand. The proportion of people working full time has not changed from last year however, at 22.7 percent,” Rosenberg said.

“The increase is not primarily because employers are increasing wages but because of the minimum wage mechanism and changes in the kinds of jobs available. Even the average wage rose by only 1.1 percent in real terms.” Rosenberg said.

“Economic growth has now peaked, and there is real concern at the effect of falling dairy prices. It is well past time that wage and salary earners saw their wage rates go up to get a fair share of the growth, rather than just being asked to work harder.” Rosenberg said.

The gender pay gap in the average hourly wage has increased over the year from 12.7 percent to 13.9 percent. It increased in four of the eight occupational groups reported.

ENDS

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