'Still lagging the cost of living,' according to SEEK NZ
Advertised salaries across New Zealand registered their second-fastest growth rate ever, but still couldn’t outpace.
Advertised salaries grew by 4.4% in the three months ending in February, according to the SEEK New Zealand Advertised Salary Index (ASI). This is just behind the 4.6% recorded in November 2021.
The quarter-on-quarter growth rate of 0.9% is also slightly slower than the 1.1% recorded in November and 1.2% in August 2022.
It is also unable to outpace inflation, as New Zealand's Cost Price Index rose by 7.2% in the December quarter.
"Advertised salaries in New Zealand are growing at close to their fastest pace on record, but they're still lagging the cost of living," said Seek NZ country manager Rob Clark in a statement.
'Solid' advertised salary growth
Advertised salary growth has been "solid across the country," according to Clark. But by region, the growth varied:
- Auckland (5.4%)
- Canterbury (4.7%)
- Rest of North (4.5%)
- Rest of South (4.3%)
- Wellington (3.3%)
The rest of New Zealand's south recorded the fastest quarter-on-quarter growth rate of 1.5%, according to the report.
Auckland and Wellington, however, recorded a one per cent quarter-on-quarter growth rate.
The New Zealand government previously announced that it will hike wages to $22.50 per hour starting April to help "thousands of New Zealanders" remain afloat amid rising costs of living.
The government also downplayed the hike's impact on inflation, pointing out that its effect is "negligible," according to Prime Minister Chris Hipkins.
Lowest-paid workers get strongest growth
Advertised salary growth was strongest for lowest-paid workers in New Zealand, according to the report.
Lowest-paid workers saw their advertised salaries increase by 15.7% since the February quarter of 2020, much faster than the 5.4% increase for highest-paid employees.
"The competition for talent in industries like Hospitality & Tourism is pushing up advertised salaries, particularly for lower-paid roles," Clark said.
