Those hoping to move to New Zealand in the near future can expect to earn a healthier salary than was previously the case, new figures show.
According to official figure, New Zealand’s average annual salary has increased by 25 per cent to $58,000 since 2008, while low inflation means much of the increase is lifting the spending power of Kiwi families.
“Delivering a stronger economy for Kiwi families remains front and centre of the Government’s busy work programme, and it is helping to drive up incomes across the country,” said Tertiary Education, Skills and Employment Minister Steven Joyce.
A combination of rising wages, reduced taxes on income and savings, and low inflation has seen take home pay increasing at four times the rate than under the previous Government, at 2.2 per cent per annum.
While between 1999 and 2008 take home pay did increase, nearly all the gains were lost through inflation. Take home pay after inflation increased at less than 0.5 per cent a year under Labour.
The latest Household Labour Force Survey also showed that 327,000 jobs have been created since the lowest point of the Global Financial Crisis (GFC) and those not in employment, education or training (NEET) was 10.7 per cent, the lowest since September 2008.
“We are now seeing job growth and real wage growth happening over an extended period of time,” continued Joyce.
“The low inflation environment means that although nominal wage increases are modest, real wage increases are higher than usual. Most salary growth is going into the back pockets of families rather than being eaten up by cost of living increases.
“Compare that with when we first took office, wages had increased by 5.1 per cent in the previous year, but that was completely offset by rampant inflation also at 5.1 per cent.”
Article published 8th September 2016