Saturday, May 25, 2024

Wages jump ahead of inflation

Workers’ have experienced their biggest pay hike on record, outstripping inflation, the latest Stats NZ figures have revealed.

The new data shows median weekly earnings from wages and salaries jumped by 8.8% in the June year, the largest annual increase since records began in 1998 and well ahead of inflation at 7.3%.

“This is an extremely positive result and shows our economic plan is working despite a challenging global environment. Unemployment is near record lows and wages are rising above inflation to help deal with cost of living pressures. The Government is also doings it bit to support households under pressure,” said Minister Robertson.

Women’s median weekly earnings increased by 9.9% for the June year, also the highest annual percentage increase on record.

“Firms are continuing to hire and more New Zealanders, particularly women, are moving from part time work into full time work, helping boost their earnings,” said Mr Robertson.

“New Zealanders are continuing to feel the effects of global inflation and its impact here. Nevertheless, most economists are forecasting that inflation has now peaked, though it will remain elevated for some time at levels above what has been experienced in recent times.

“We have taken action to ease cost of living pressures on households, particularly those on lower incomes. We are also taking action to ensure New Zealanders are paying a fair price at the petrol pump, supermarket checkout and hardware store.”

The Minister said New Zealand “finds itself in one of the best positions in the world to respond, with the economy growing at an annual rate of 5.1%, unemployment near record lows and debt at levels substantially below countries we compare ourselves with”.

“Our focus is keeping the economy moving in the right direction and create the conditions to support people into work and drive higher wages,” he said.

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