Wages high as pressure on jobs mounts

Wages are increasing across the country as pressure on the job market mounts.

In the 12 months to November, the average salary per filled job rose 7.6 per cent, a 20-year high according to Infometrics.

In the same period, the total amount paid to workers nationally rose a recordbreaking 9.6 per cent.

Brad Olsen, principal economist at Infometrics, said the numbers reflected both continued pressure on wage increases and more jobs in the market.

‘‘This figure is a strong signal that businesses are facing higher wage and salary pressures. People are making it known that they have other options they want to explore.

‘‘If companies want to keep their employees they are going to have to think very carefully about their pay levels,’’ Olsen said.

North Island employment rose 4.5 per cent compared to 3.5 per cent in the South Island, led by stronger job numbers in Northland and Auckland, with 5.6 per cent and 4.7 per cent increases respectively.

Alongside more jobs was pressure for rising wages to compensate for higher inflation and a greater cost of living, Olsen said.

‘‘We know there are jobs on offer. The NZIER quarterly survey shows the expected labour turnover is the highest it has been since the 1970s. Everything at the moment is pointing towards the difficulty in finding new workers, but also maintaining current employees,’’ Olsen said.

Construction and professional services had the largest workforce increases, up 8.6 per cent and 8.2 per cent respectively over the past year.

The removal of Delta restrictions had helped to revive economic demand and the need for more workers, he said.

‘‘The boost in Auckland employment is a clear example of this recovery,’’ Olsen said.

Looking towards the rest of the year, Olsen predicted the job market would accelerate, with workers in the driver’s seat.

‘‘We are expecting wage growth to pick up, increased inflation and a hot job market is going to increase demands on businesses to pay people more,’’ he said.

The only thing that could hamper the increase was lack of workers. ‘‘The question is not can we sustain jobs because of demand but are there enough workers across these sectors.

‘‘The construction sector was up 8.6 per cent, but what could it be if we had more people coming into the country? Finding the workers is the key challenge for this year,’’ Olsen said.