Kiwis complain over low wages

Sixty-five per cent of survey respondents think New Zealand’s wages compare poorly to other countries – and they may have a point.

BY Nicola Middlemiss 01 Sep 2017

A new survey is showing just how discontented Kiwis are with the current pay rates after 65 per cent said New Zealand’s wages compare poorly to other countries.

Conducted be research and analytics firm Canstar, the study compiled responses from over 2,500 participants in order to identify the trend.

“This is obviously a subject Kiwis feel very strongly about and to be honest, they may have a point,” said Jose George, general manager of Canstar.

According to the OECD, New Zealand’s average wage is lower than that of many other countries – including the UK, Australia and the USA.

“These countries also tend to be the places that large numbers of Kiwis spend their OE or live before returning home,” said George.

“In addition, a large number of immigrants to New Zealand originated from these countries – Australia and the UK in particular – so personal experience could be of higher wages.”

Lower wages aren’t the only thing separating New Zealand for its counterparts – according to the OECD, the country continues to experience a growing disparity between our highest and lowest earners.

This is in spite of a healthy New Zealand economy, GDP growing by an average 2.8 per cent per annum and employment growth averaging 2.5 per cent per annum, over the last five years.

“On a national level we have positive economic and employment growth, but at a consumer level there is the much publicised ‘inflated housing market’, talk of insurance rate hikes and fuel prices rising, to name but a few,” said George. “It’s not surprising that people are feeling like inflation is evident everywhere other than their wage packet.”

The same survey found that 71 per cent of gen xers – who make up the majority of New Zealand’s workforce – feel that wages are too low.

“We think it’s reasonable to assume that gen xers are more likely to have experience of different jobs and job markets and have stronger opinions of their own value, so their views should be pretty well formed,” said George

“Labour market shortages have already been highlighted by some industries and by some regional agencies. As our population is set for continued growth wage disparity, and the role it plays in attracting skilled workers, does not look like an issue that is going to disappear.”

Other findings from the recent study include:

Women are more likely than men to perceive wages as too low, at 68 per cent and 61 per cent respectively.
At 71 per cent, Gen xers are most likely to see wages as too low, followed by millennials (63 per cent) and baby boomers (60 per cent).
Three quarters of people in the Nelson region feel wages are too low – higher than any other area.
At 62 per cent, people in Otago are least likely to feel that wages are low in New Zealand compared to other countries. This is lower than any other region and slightly less than the national average of 65 per cent.