Average Hourly Earnings Up 5.2 Percent Annually

Average ordinary time hourly earnings, as measured by the Quarterly Employment Survey (QES), increased 5.2 percent in the year to the March 2024 quarter, according to figures released by Stats NZ today.

Annual wage cost inflation, as measured by the labour cost index (LCI), was 4.1 percent.

“Although wage cost inflation eased and average hourly earnings growth started to slow this quarter, annual growth remained high for the two surveys,” business employment insights manager Sue Chapman said.

The health care and social assistance industry was a large contributor to the annual increase in both QES and the LCI. Total average hourly earnings (including overtime) were up 8.1 percent and wage cost inflation was 6.3 percent for this industry.

Average hourly earnings up 6.9 percent annually, the December 2023 quarter’s wages story, covers collective agreements that continue to contribute to the annual increases seen in education and health care industries.

The annual increase of 7.8 percent in the public administration and safety industry also contributed to the average hourly earnings rise in the QES.

The Public Service Pay Adjustment (PSPA) negotiated by the PSA increased salaries in several public service departments ahead of the March 2024 quarter.

Average hourly earnings rise more for women

Average ordinary time hourly earnings for both men and women, as measured by the Quarterly Employment Survey (QES), increased to $40.96, an annual increase of $2.03.

In the year to the March 2024 quarter, average ordinary time hourly earnings for:

• women rose 6.9 percent to $38.87, up $2.51
• men rose 3.8 percent to $42.79, up $1.57.

Over the last 10 years, men received an increase of $12.80 (43 percent) and women received an increase of $12.91 (50 percent) to hourly earnings.