SEEK New Zealand Advertised Salary Index - February

30 March 2023

The SEEK New Zealand Advertised Salary Index (ASI) measures the growth in advertised salaries for jobs posted on SEEK in New Zealand. This report examines national trends up to the quarter ending February 2023 (December 2022 and January and February 2023). The next quarterly SEEK ASI report will be released in June. For more information, including how the SEEK ASI differs to other wage metrics, and to download the data from this report, see here.

NATIONAL ADVERTISED SALARY TRENDS

• Advertised salaries grew by 4.4% in the year to the February 2023 quarter* close to the fastest growth recorded in the data set beginning 2016.
• Quarter-on-quarter growth of 0.9% has been broadly consistent over the past year, though it has slowed a little compared to the 1.1% in the previous quarter.

INDUSTRY ADVERTISED SALARY TRENDS

• Advertised salary growth has been particularly rapid in Advertising, Arts & Media (11.0%).
• Industries with heavy public sector involvement have seen advertised salary growth of a similar pace to other industries.
• Marketing & Communications and Legal recorded the slowest growth in advertised salaries.

REGIONAL ADVERTISED SALARY TRENDS

• Advertised salaries are growing in every part of New Zealand.
• Wellington had the slowest growth over the year (3.3%).
• Auckland experienced the most rapid growth (5.4%).

ANALYSIS

• Advertised salaries for lower-paid jobs have risen faster than for higher-paid jobs, due to strong demand for workers in those roles.

*The February Quarter includes December, January and February

NATIONAL ADVERTISED SALARY TRENDS

Advertised salaries in New Zealand are growing at a solid pace, up 4.4% in the year to the February quarter 2023. This is the second-fastest growth rate recorded in the history of the SEEK ASI, with data going back to 2016. The fastest growth recorded was in the year to November 2021, when advertised salaries rose by 4.6%. Advertised salary growth has picked up considerably since the 2.7% recorded in the year to February 2020, the year prior to the COVID pandemic.

Advertised salaries were up 0.9% in the quarter to February. This represents a slight slowing of the quarter-on-quarter growth rates from 1.1% in November and 1.2% in August 2022.

Although advertised salary growth is the second fastest on record, it still lags inflation. The Cost Price Index (CPI) rose by 7.2% in New Zealand in the year to the December quarter 2022*, outpacing the 4.4% growth in advertised salaries.

The SEEK ASI has picked up further and faster than overall wages growth, as measured by Stats NZ’s Labour Cost Index (LCI). The LCI measures the change in overall wages for all jobs, whereas the SEEK ASI measures the change in advertised salaries for vacant roles, which tends to respond more quickly to changes in market conditions. The relatively rapid growth in advertised salary growth suggests overall wages growth may continue to pick up in New Zealand.

*Source: Stats NZ.

INDUSTRY ADVERTISED SALARY TRENDS

New Zealand is experiencing a multi-speed economy when it comes to advertised salary growth. Some industries, such as Advertising, Arts & Media are seeing very rapid growth in advertised salaries, while others (such as Marketing & Communications) are barely growing. Advertised salary growth for Government has been relatively modest, which explains why Wellington lags other parts of New Zealand.

REGIONAL ADVERTISED SALARY TRENDS

The SEEK ASI is calculated for five regions of New Zealand: Auckland, Wellington, and the rest of the North Island, plus Canterbury and the rest of the South Island. Advertised salary growth has been solid across most parts of the country, growing at between 4.3% and 5.4%. Wellington lagged the rest of New Zealand, but still recorded solid advertised salary growth of 3.3%.

ANALYSIS: SALARY GROWTH STRONGEST FOR THE LOWEST PAID

During the pandemic, demand for workers has been strong across the board. It has been strongest for a range of customer-facing roles, many of which are typically lower paid, such as roles in Hospitality & Tourism. This strong demand for workers in relatively low-paid roles has pushed up advertised salaries for roles at the lower end of the pay scale.

Since the February quarter of 2020, advertised salaries for the lowest paid fifth of jobs have risen by 15.7%. This significantly outstrips the growth at the top end – advertised salaries for the highest paid roles has risen by 5.3%.

© Scoop Media