Robust Wage Growth in New Zealand: Median Earnings Up 7.1%, with 6.6% Rise in Hourly Earnings in June 2023

Median weekly and hourly earnings from wages and salaries increased by 7.1 and 6.6 percent respectively, in the year to the June 2023 quarter, according to figures released by Stats NZ today.

Median weekly earnings from wages and salaries grew by 7.1 percent ($84) over the year, to reach $1,273. This was the second-largest annual rise since the series began in 1998, surpassed only by the previous year’s annual increase.

“Median weekly earnings continued to grow strongly over the year, especially for women, whose earnings rose 8.1 percent annually, following record growth the previous year,” labour market manager Malak Shafik said.

Hourly earnings up 6.6 percent, gender pay gap relatively unchanged

In the year to the June 2023 quarter, median hourly earnings from wages and salaries were up 6.6 percent ($1.95) to reach $31.61. This was the second-largest annual percentage increase in median hourly earnings since the series began in 1998, following from the largest increase in the previous year.

Strong hourly earnings growth was also seen in average ordinary time hourly earnings, as measured by the Quarterly Employment Survey (QES), which rose 6.9 percent in the year to the June 2023 quarter to reach $39.53.

Annual wage cost inflation remains at 4.3 percent has more information on wage increases seen over the year as measured through business surveys, including the QES and labour cost index.

Median hourly earnings for women were up 7.7 percent over the year, to reach $30.15 – this was the largest annual increase in the series. Men’s median hourly earnings were up 7.0 percent to reach $33.00 – the second-largest annual increase in the series.

“Although women saw historically strong growth in median hourly earnings, there was no statistically significant change in the gender pay gap over the year, meaning that it remained relatively unchanged since the June 2022 quarter,” Shafik said.

“Women working in full-time wage and salary jobs saw higher median hourly earnings growth than those working part-time.”

Median hourly earnings for women in full-time wage and salary jobs were up 8.8 percent over the year, to reach $32.60, while hourly earnings for women working part-time increased 4.2 percent annually.

Comparatively, men saw roughly equal growth in both full-time and part-time median hourly earnings, up 6.5 and 6.3 percent respectively.