May 15, 2024

Average ordinary time hourly earnings, as measured by the Quarterly Employment Survey (QES), increased 5.2 percent in the year to the March 2024 quarter, according to figures released by Stats NZ today.

Annual wage cost inflation, as measured by the labour cost index (LCI), was 4.1 percent.

“Although wage cost inflation eased and average hourly earnings growth started to slow this quarter, annual growth remained high for the two surveys,” business employment insights manager Sue Chapman said.

The health care and social assistance industry was a large contributor to the annual increase in both QES and the LCI. Total average hourly earnings (including overtime) were up 8.1 percent and wage cost inflation was 6.3 percent for this industry.

Average hourly earnings up 6.9 percent annually, the December 2023 quarter’s wages story, covers collective agreements that continue to contribute to the annual increases seen in education and health care industries.

The annual increase of 7.8 percent in the public administration and safety industry also contributed to the average hourly earnings rise in the QES.

The Public Service Pay Adjustment (PSPA) negotiated by the PSA increased salaries in several public service departments ahead of the March 2024 quarter.

Average hourly earnings rise more for women

Average ordinary time hourly earnings for both men and women, as measured by the Quarterly Employment Survey (QES), increased to $40.96, an annual increase of $2.03.

In the year to the March 2024 quarter, average ordinary time hourly earnings for:

  • women rose 6.9 percent to $38.87, up $2.51
  • men rose 3.8 percent to $42.79, up $1.57.

Over the last 10 years, men received an increase of $12.80 (43 percent) and women received an increase of $12.91 (50 percent) to hourly earnings.

“While women have received greater increases to average hourly pay over the last year, as measured by the Quarterly Employment Survey, men’s average hourly earnings remained nearly $4 per hour higher than women’s in the March 2024 quarter,” Chapman said.

The official gender pay gap is calculated annually using Household Labour Force Survey (HLFS) median hourly earnings, which provide a better measure of ‘typical’ pay than mean averages. The QES and HLFS also have different survey coverages.

Measuring the gender pay gap has further information.

Education and health wages increase for women

Women’s average ordinary time hourly earnings rose 6.9 percent in the year to the March 2024 quarter, driven by the health care and social assistance and education and training industries.

“Nearly a third of all jobs held by women are in health care and education industries. This means that large wage increases in these two industries contribute strongly to growth in women’s average hourly earnings nationally,” Chapman said.

Source: STATS NZ
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