Infometrics provides insights on wage trends
2024 proved challenging for the labour market, marked by rising unemployment and sluggish wage growth.
However, the impact varied significantly across different sectors, with some enjoying substantial pay rises while others saw minimal changes.
Infometrics chief executive Brad Olsen (pictured above) provided insights into the sectors that experienced the largest fluctuations in pay.
Sector-specific wage increases
Healthcare and social assistance workers saw the most substantial wage increase, with an average rise of 7.9%, reflecting the ongoing demand and recent pay agreements.
“Higher pay rates for the broader health workforce show through in the numbers. Education was up there too, rising 5.7% for the third-largest increase,” Olsen told RNZ, emphasising the impact of structured pay agreements and consistent demand.
Forestry and mining followed closely, witnessing a 6.2% increase.
“This industry group is a small one, and part of the reason for the larger percentage increase may have been that lower-earning roles in forestry were lost over the last year – we know there have been job losses in forestry – due to lower commodity prices and weaker export potential,” Olsen said.
Struggling sectors: Accommodation and food services
Conversely, the accommodation and food services sector faced the toughest year, with only a 1.2% increase in wages.
Olsen said the minimal wage growth was due to reduced demand and an abundance of job seekers in this sector, compounded by minimal increases in the minimum wage, which significantly impacts average wages in hospitality, RNZ reported.
Professional services and manufacturing see modest increases
Professional services and manufacturing also saw meager wage increases of 1.7% and 2.1%, respectively.
The professional services sector, in particular, faced job losses and reduced government spending on contractors and consultants, affecting wage growth.
Future outlook and emerging trends
Looking ahead, there’s cautious optimism for wage increases across various sectors.
Recruitment firm Robert Walters highlighted a shift towards salary increases, with 62% of businesses likely to raise salaries this year.
“Last year was a year where we saw a number of restructures followed by a period of consolidation for many businesses resulting in many employees accepting what was offered to them,” Oli Sanford-Scutt of Robert Walters Auckland told RNZ.
“However, this year, there is a renewed sense of optimism in the market, with growing confidence indicating that pay increases will be a key theme.”
Additionally, the market is seeing significant investments in technology, fueling demand for new skills, particularly in high-growth areas like AI, data, and security, which are expected to continue growing.
Public sector adjustments
In the public sector, wage adjustments have led to more uniform rates across different roles, with Bridget Clarke of Robert Walters Wellington observing, “It’s worth noting that we also saw greater rate harmonisation, resulting in more consistent hourly rates across the public sector, with fewer variations.”
