Median hourly earnings

Relevance

Median hourly earnings from wage and salary jobs is an indicator of the financial return from paid employment, independent of the number of hours worked.

Current level and trends

In June 2008, half of all people employed in wage and salary jobs earned more than $18.75 an hour. The median hourly wage for male employees was $20.00, while for female employees it was $17.50.

Real median hourly earnings increased by $2.73 an hour or 17 per cent in the 11 years to June 2008. The increase over this period was greater for female employees (18 per cent) than for male employees (12 per cent). The ratio of female to male median hourly earnings was 88 per cent in June 2008. It rose from 83 per cent in June 1997 to 88 per cent in June 2001 but has not risen above that level since.

Figure PW3.1 Median hourly earnings from wage and salary jobs (in June 2008 dollars), by sex, June 1997 to June 2008

Source: Statistics New Zealand, New Zealand Income Survey

Age differences

In 2008, median hourly earnings from wage and salary jobs were highest at ages 30–34 years and 35–39 years ($21.74 and $21.70 an hour respectively). This compares with $12.00 an hour for 15–19 year olds. By five-year age groups, the increase in employees’ real median hourly earnings between 1997 and 2008 was largest for those aged 15–19 years (26 per cent) and those aged 60–64 years (24 per cent), and smallest for those aged 40–44 years (10 per cent). Across broad age groups, real median hourly earnings between 2007 and 2008 increased by 11 per cent for those aged 15–24 years, 13 per cent for those aged 25–44 years, 16 per cent for those aged 45–64 years and 17 per cent for those aged 65 years and over.

Sex differences

In 2008, there was a difference between the sexes in median hourly earnings for wage and salary earners at all ages over 25 years. The gap was greatest at ages 40–44 years, where the ratio of female to male median earnings for employees was 76 per cent. There was little difference between the earnings of men and women in the under 25 years age groups.

Figure PW3.2 Median hourly earnings from wage and salary jobs, by age and sex, June 2008

Source: Statistics New Zealand, New Zealand Income Survey

Ethnic differences

In June 2008, Europeans had the highest median hourly earnings for wage and salary earners at $19.50 an hour. In comparison, the Other ethnic group (including Asian) had median hourly earnings of $17.00. The median hourly earnings of Māori and Pacific ethnic groups were the lowest at $16.74 and $15.40, respectively. The ratio of Māori to European median hourly earnings was over 85 per cent between 1998 and 2008, with the exception of 2007, when the ratio fell to 81 per cent. The ratio of Pacific peoples to European median hourly earnings varied between 79 per cent and 85 per cent over the same period.

Over the 11 years to June 2008, increases in inflation-adjusted median hourly earnings from wage and salary jobs were highest for Māori (20 per cent), followed by Europeans (17 per cent) and Pacific peoples (14 per cent). Employees from the Other ethnic group (including Asian) experienced the lowest increase in real median hourly earnings from wage and salary jobs (6 per cent).

Regional differences

In 2008, workers in Wellington and Auckland had substantially higher earnings than those in other regions. The median hourly wage for wage and salary earners was $20.14 in Wellington, $19.89 in Auckland and $18.23 in Canterbury. Median hourly wages were lowest in Manawatu-Whanganui and Northland (both $17.00) and in Gisborne-Hawke’s Bay ($17.30). Over the period 1998–2008, real median hourly wages increased most in Nelson/Tasman/Marlborough/West Coast (19 per cent) and in Canterbury and Northland (both 16 per cent). All regions experienced positive growth in real hourly wages over the period.

» View technical details about the median hourly earnings indicator