6 April 2017
New Zealand job market booming but wages languish
The New Zealand employment market remains extremely strong with job listings
surging by more than 15 per cent year-on-year in the first quarter of 2017,
according to the analysis of over 65,000 vacancies advertised on Trade Me
Jobs.
Head of Trade Me Jobs Jeremy Wade said it was the third consecutive quarter
that the percentage of new listings on the site had jumped by double digits,
but wage inflation was benign. "The job market is in great health and we''ve
seen incredible jumps in the number of roles advertised but, with a few
exceptions, wage growth has been surprisingly flat by comparison.
"While increased migration has probably muted wage growth to date, we think
the tide is going to turn. Employers are unlikely to continue finding the
right people unless they tempt passive job seekers with the lure of better
pay. Money talks and we suspect Kiwi employers will need to meet the job
market with higher salaries in the coming months.
Job hunters should expect more
Mr Wade said the average salary for the quarter was basically flat, and down
three per cent on the last quarter of 2016. "We''re seeing small increases in
average pay across growth industries such as Construction and Customer
Service, but overall wages aren''t matching demand.
"The number of roles advertised has exploded in recent months which in turn
means that the average number of applications per role has dropped 13 per
cent on this time last year. Job hunters can be more selective which makes it
harder to fill these roles.
"Some employers have looked to immigration channels to address this shortage.
Immigration alone won''t correct the shortfall, though it may be suppressing
wage growth. We think employers are going to have to work hard on their
employment brand and/or improve salary packages to lure people away from
their current jobs or to retain existing staff."
Mr Wade said ANZ estimated the job vacancy rate for New Zealand companies is
at its highest point since 1994. "If that''s true, then a wage war is just
around the corner and job hunters can expect to see a bigger wage packet
dangled in front of them."
Auckland city pushes Wellington aside on pay
For the first time since mid-2014, Auckland City has wrestled the average
highest pay ($71,817) away from Wellington City ($67,592). Mr Wade said both
Wellington and Auckland had seen ''huge'' growth in new job listings, up 14 per
cent and 15.9 per cent respectively.
"Auckland employers are feeling the pinch when trying to employ new people
and have been putting more money on the table. There is going to be a
neck-and-neck battle between the Capital and the City of Sails as they
compete for top talent."
Regions booming
Mr Wade said it''s boom time in the regions as job growth in most areas
outstripping the main centres. "Almost every region in the country had
double-digit percentage jumps in new listings compared to last year, led by
Gisborne (up 40 per cent), the Waikato (up 36.5 per cent) and West Coast (up
32.4 per cent).
"Some of these regions have pretty small job markets but these numbers are
incredible. The West Coast has double the listings it had last year which is
positive news for the local economy. The jump in new listings in the regions
has been led by Transport & Logistics, Manufacturing & Operations and
Construction sectors."
The only region to fall compared to this time last year was Canterbury (down
2 per cent) which Mr Wade said was predominantly down to a decrease in the
number of Trades & Services roles available. "The year-on-year decrease is a
reflection of the Canterbury job market recalibrating from its post-quake
building boom. Recent job listing volumes suggest the Canterbury job market
looks to be stabilising and we don''t expect to see it declining for much
longer."
In the sectors
Of the 26 sectors monitored by Trade Me Jobs, only five had less listings
than the same quarter last year. As with the regions, most sectors reported
double-digit increases.
Sectors that did particularly well were Manufacturing & operations (up 34.9
per cent), Retail (up 31.3 per cent) and Property (up 30.7 per cent).
"The biggest fall amongst the sectors was Banking, finance & insurance (down
21.4 per cent) which we put down to ongoing belt tightening from the major
banks," says Mr Wade.
Technology continues to be the most lucrative career option on Trade Me Jobs,
with all five of the top salary spots taken by IT roles. IT architects were
number one again with an average salary of $144,563.
In the lowest paid roles on Trade Me Jobs there was modest wage growth for
Housekeeping (up 3.3 per cent), Caregivers (0.6 per cent), Retail assistants
(2.6 per cent) and Bar/Barista (3.5 per cent) roles. "We expect to see the
wages for roles like this continue to grow further as the new minimum wage
comes into effect."
-ends-
MORE INFORMATION:
o Interviews and regional data: Jeremy Wade is available for interviews. To
lock in an interview with Jeremy or for regional data, please contact Logan
Mudge by emailing mediaenquiries@trademe.co.nz or phoning (027) 477 9486.
o National data: The full Trade Me Jobs Q1 results are set out below. Please
let us know if there''s any regional data we can look into for you.
o Further information/comment: if you''d like further data or analysis see the
ANZ''s latest NZ Economic Outlook or MBIE''s Jobs Online report for February.
Table 1: Listings growth by job: Q1 2017 v Q1 2016
Category Year-on-year % change:
Q1 2017 vs Q1 2016
Accounting 12.9
Agriculture, fishing & forestry 24.5
Architecture - 14.0
Automotive 29.5
Banking, finance & insurance - 21.4
Construction & roading 21.8
Customer service 29.1
Education 16.8
Engineering - 4.7
Executive & general management 22.3
Government & council 17.3
Healthcare 15.1
Hospitality & tourism 20.6
HR & recruitment 6.2
IT - 13.7
Legal 15.6
Manufacturing & operations 34.9
Marketing, media & communications - 4.0
Office & administration 16.9
Other 8.1
Property 30.7
Retail 31.3
Sales 10.3
Science & technology 17.5
Trades & services 12.0
Transport & logistics 27.6
Total 15.6
Table 2: Average pay by job (full-time only): Q1 2017
Highest paid Pay rate ($)
1 IT architects 144,563
2 IT project managers 140,824
3 IT functional consultants 129,968
4 IT managers 122,222
5 IT data warehousing & business intelligence 119,975
Lowest paid Pay rate ($)
1 Housekeepers 37,775
2 Caregivers 37,907
3 Kitchen staff 38,279
4 Retail assistants 38,702
5 Bar staff & baristas 39,529
Table 3: Listings growth by region Q1 2017 v Q1 2016
Region Year-on-year % change:
Q1 2017 vs Q1 2016
Auckland 15.9
Bay Of Plenty 14.8
Canterbury - 2.0
Gisborne 40.0
Hawke''s Bay 22.0
Manawatu / Wanganui 24.4
Marlborough 42.0
Nelson / Tasman 23.6
Northland 23.1
Otago 32.3
Southland 18.8
Taranaki 10.4
Waikato 36.5
Wellington 14.0
West Coast 108.9
Total 15.6
Table 5: Average pay by region (full-time only): Q1 2017
Highest paid Pay rate ($)
1 Auckland City 71,817
2 Wellington 67,592
3 Papakura 59,017
4 Upper Hutt 58,740
5 Central Hawke''s Bay 58,319
Lowest paid Pay rate ($)
1 Porirua 48,251
2 Mackenzie (Canterbury) 48,291
3 Horowhenua 48,915
4 Western Bay Of Plenty 49,698
5 Grey (West Coast) 50,230
End CA:00299501 For:TME Type:GENERAL Time:2017-04-06 08:50:31