Monday, July 15, 2024

Wages still outpacing inflation

Finance Minister, Grant Robertson says workers are continuing to benefit from a resilient economy, with latest Stats NZ figures showing wages outpacing inflation again.

The new data shows median weekly earnings from wages and salaries leapt by 7.1% in the June year, the second largest annual increase since records began in 1998 and ahead of inflation at 6%

Women’s median weekly earnings increased by 8.1% for the June year, also the second highest annual percentage increase on record.

“Unemployment remains low and wages are rising above inflation to help Kiwis deal with cost of living pressures. This is another great result and shows the Government’s plan for the economy continues to keep New Zealand moving in the right direction,” Minister Robertson said.

“We know New Zealanders are doing it tough right now. We’re taking action to ease the pressure on Kiwi budgets, with cheaper childcare, free prescriptions and half priced public transport for young Kiwis coming into force from July 1.

“We have also significantly lifted the incomes of seniors, families, workers and students while the Winter Energy Payment will provide cost of living relief for electricity bills.”

He said the Government was also doing its bit to ease pressure by reducing spending and overall demand in the economy, with real Government consumption forecast to fall by 5% by the beginning of 2025.

“New Zealand is in good shape to weather the difficult global conditions. We have record numbers of people are in work and wages are rising faster than inflation. Tourists are returning in greater numbers, overseas workers are filling vacancies and our public debt levels remain among the lowest in the world.”

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

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