Average weekly earnings

IBISWorld anticipates average weekly earnings to rise by 1.5% during 2024-25 to reach $1,590.28. According to StatsNZ, average weekly earnings have shown significant growth from 2020 to 2024, reflecting broader economic trends like increasing demand for skilled labour, which has driven higher wages to attract and retain employees in a competitive job market. Also, developments like changes in employment laws, evolving workplace dynamics and rising living costs have influenced wage adjustments, contributing to the overall upward trajectory of earnings across different demographics. As of June 2024, men earned an average of $1,692 per week, up from $697 in 2000, while women's average weekly earnings rose to $1,322 from $466 over the same period. This trend indicates a narrowing of the wage gap, which decreased from 33% in 2000 to about 22% in 2024, highlighting ongoing progress towards gender pay equality. The Household Labour Force Survey data underscores not only wage growth but also shifts in employment patterns and demographics across various sectors of the economy.

Average weekly earnings have grown steadily over the past five years, but wage growth has varied significantly across sectors. The average hourly wage in the retail sector is $29.68, reflecting a 2.8% increase over the past year. Over the five years through 2023-24, average weekly earnings in retail have grown at a compound annual rate of 5.5%, driven by rising disposable incomes and increased consumer spending, which have supported sector expansion and wage growth. Healthcare wages have experienced even stronger growth, rising at a compound annual rate of 6.0% over the same period. New Zealand's ageing and expanding population has placed mounting pressure on the healthcare system, prompting providers, particularly in the private sector, to offer competitive salaries to attract and retain talent. Wage disputes, like those raised by the Nurses Organisation in New Zealand regarding Health NZ's proposed pay increases—which they argue fall short of inflation and undervalue nurses' contributions—are expected to add further upward pressure on healthcare wages. Also, the increase in the minimum wage to $23.15 per hour in 2024, up from $22.70 in 2023, has contributed to the overall rise in average weekly earnings across the economy. Overall, IBISWorld forecasts average weekly earnings to increase by a compound annual rate of 4.7% over the five years through 2024-25.