Salaries hit record-high in first quarter of 2023

Salaries for New Zealanders hit a record-high in the first quarter of 2023, according to data from Trade Me Jobs, as indicators reveal a "pretty good shape" for the jobs market.

The average salary in the first quarter hit $68,316, an increase from the previous year's $67,562.

And not only are salaries breaking records, but there is also a strong wage growth recorded across regions, according to Trade Me Jobs sales director Matt Tolich.

New Zealand's South Island saw the largest average increases, according to the report, with the following locations reporting a new record on average salaries:

• West Coast (up 11%)
• Southland (up 8%)
• Otago (up 8%)
• Nelson/Tasman (up 7%)

Wellington remains the top spot for the highest-paying region, with salaries going as high as $71,825, according to Tolich.

"This is followed, surprisingly, by West Coast at $69,700. While the West Coast is one of our smallest markets, in Q1 we saw a number of highly paid roles hit the market in the region which saw it overtake Auckland (at $69,546) by just $150," the director said in a statement.

Tolich attributed the salary growth to a variety of reasons, including efforts from employers to attract and retain talent amid a tight labour market.

"These rising salaries are in part a legacy of 2022's skill shortage, where employers had to lift their game to attract quality workers, along with a reaction to the cost-of-living crisis, and the increase in the minimum wage," Tolich said.

WFH sees 269% increase

Vacancies across New Zealand saw a seven per cent drop this quarter, but the number of employers offering work from home surged across the country, according to Trade Me Jobs data.

It found a 269% increase in the job listings with a "work from home" description since the first quarter of 2019. The average salary for these advertisements also increased from $73,000 to $85,000.

This is a result of more employers embracing flexible work as working from home remains "key priority for job hunters," according to Tolich.

Applications also up

Meanwhile, applications for job postings also went up by 83% year-on-year. According to Tolich, the increase per industry went:

• Construction and roading (116% increase)
• Engineering (135% increase)
• IT (127% increase)
• Trades and services (109% increase)

"The hospitality and tourism sector had an 83% surge in applications and a four per cent increase in jobs as it gears back up after the borders have reopened," Tolich said.

The hike in hospitality and tourism is fuelled by the demand for global travel, as well as the number of individuals with visas entering the country, according to the director.

With the hikes reported, employers will have a greater pool of talent to choose from in their next roles, he added.

"This means a greater spread of applicants for potential employers to choose from, ensuring they get the best talent for the role," Tolich said.

'Pretty good shape'

These recent findings go against expectations that job listings would dramatically fall and salaries would stagnate while employers grow concerned about a looming recession, according to Tolich.

"However, the first quarter bucked this trend with more money going into bank accounts on payday. And when comparing job listings to the same period in 2019, vacancies were down only seven per cent, a much smaller drop than we would’ve expected," he said.

"Overall, the jobs market is in pretty good shape considering the macroeconomic conditions at play."