Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Welcome rise in the share of wages and salaries in NZ income

Welcome rise in the share of wages and salaries in New Zealand’s income

Source: CTU

--

Working people welcome the modest rise in the share of New Zealand’s income that is received by wage and salary earners in the year to March. It is a step in the right direction," says CTU President Richard Wagstaff.

"National income statistics released by Statistics New Zealand today show more good news for wage and salary earners in that our share of NZ’s total income is growing again after nearly a decade of going backwards. This news comes on the back of last week’s figures from StatsNZ strong record wage growth on the back of effective union collective bargaining."

"We do need to keep this in perspective because we have a long way to go before the share even matches the OECD median, let alone that of successful societies and economies such as Denmark."

"Countries like Denmark set wages through widespread use of industry or sector bargaining like Fair Pay Agreements, setting a floor for enterprise collective agreements. So while these figures are welcome news, until we get a system in place like Fair Pay Agreements, and achieve a modern, more inclusive wage setting system, we will struggle to become even average in the OECD when it comes to sharing our nation’s wealth fairly with wage and salary earners."

"Better systems of collective bargaining are long overdue. That is why we have been urging the Government to act on Fair Pay Agreements with urgency."

National income statistics released by Statistics New Zealand today show that the share of income paid to wage and salary earners (the labour share of income) fell in the year to March 2018 - a revision from last year’s publication which showed it as close to static. It rose in the most recent year (to March 2019), restoring that fall. As a proportion of New Zealand’s domestic income after taking account of depreciation (Net Domestic Income), the share was 58.0 percent in the year to March 2018 and has risen to 58.9 percent in the year to March 2019, restoring it to where it was in the year to March 2017.

"That is a modest rise, but still meaningful. Each percentage point is worth approximately $1,000 per year to the average wage and salary earner. But wage and salary earners have still on average lost $2,500 per year due to the fall in the labour income share since 2009. If the share was at the level of 1981 (similar to Denmark’s current level), they would be $12,700 per year better off," Wagstaff said.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>

ALSO:


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>