Despite bigger increase, women still lagging behind men in average hourly earnings

Overall, average ordinary time hourly earnings up 5.2% in March 2024

Despite bigger increase, women still lagging behind men in average hourly earnings

Women saw a bigger increase in average hourly earnings in the year to the March 2024 quarter, but they remained behind what men are currently earning, according to data from Stats NZ.

The average ordinary time hourly earnings for women went up by 6.9%, or $2.51, to reach $38.87 in the year to the March 2024 quarter, Stats NZ data revealed.

On the other hand, men saw a 3.8% increase to $42.79, up by $1.57.

"While women have received greater increases to average hourly pay over the last year, as measured by the Quarterly Employment Survey (QES), men's average hourly earnings remained nearly $4 per hour higher than women's in the March 2024 quarter," said Sue Chapman, business employment insights manager, in a statement.

Stats NZ clarified, however, that the country's official gender pay gap is calculated annually using the Household Labour Force Survey (HLFS) median hourly earnings.

That survey provides a "better measure of 'typical' pay than mean averages," according to Stats NZ, underscoring that the QES and HLFS have different survey coverages.

Average hourly earnings up

Overall, the average ordinary time hourly earnings went up by 5.2% in the year to the March 2024 quarter, as the annual wage cost inflation was at 4.1%.

"Although wage cost inflation eased and average hourly earnings growth started to slow this quarter, annual growth remained high for the two surveys," Chapman said.

The health care and social assistance industry was a major contributor the increase, according to Stats NZ.

Total average hourly earnings in the industry went up 8.1%, while wage cost inflation was 6.3%.

The public administration and safety industry also had a contribution to the average hourly earnings increase after logging an annual hike of 7.8%.

According to Stats NZ, the annual increases in the health care sector and higher salaries in some public service departments pushed the average hourly earnings up in these industries.

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