Salaries on the rise as skill shortages and cost of living continue to bite

While Trade Me job listings are down 15% nationwide in the second quarter compared to the first quarter, salaries are up. Trade Me says the average salary for jobs listed on its site is now $70,069, up 6% from last year. The average salary for the banking, finance and insurance industry is $86,250, up 14% over the last five years. The average salary for healthcare workers is $69,647, up 26% over the last 5 years.

Trade Me Jobs sales director Matt Tolich said

“…employers are working hard to make sure salaries are competitive in order to attract employees in this high cost of living environment.”

The Hays Salary Guide FY23/24 has similar findings, with 88% of employers experiencing a skills shortage. Perhaps because of this, 95% of employers plan to increase salaries this year (up from 88% last year). 48% of employees intending or considering changing jobs cited an uncompetitive salary as the top reason they were looking elsewhere. Hays have determined the four key factors driving salary increases to be competition amid a continued and growing skills shortage; falling real wages; pay transparency; employees’ confidence to negotiate for better compensation.

Hays lists the top five jobs employers need to fill in the NZ insurance industry as Claims Consultants, Loss Adjusters, Broker Support, Compliance Specialist and Brokers.

16,878 people arrived in Aotearoa on work visas in June, with over 15,000 people arriving on work visas every month of this year. With immigration heading back to pre-pandemic levels, hopefully this will help ease the skills shortage.

Small business owners are doing it tough. A Xero survey of small business owners has found nearly half of small business owners and 60% of sole traders aren't paying themselves so they can keep their businesses running. Bridget Snelling, Xero's New Zealand Country Manager, says

“When small business owners experience cash flow issues one of the first things to go is their own pay, followed by an inability to pay suppliers which has a ripple effect throughout the economy.

It’s a systemic and volatile cycle, which sees business owners dipping into their own personal savings, working unattainable hours, and ultimately sacrificing their emotional and physical wellbeing to stay afloat”