Median hourly earnings
Definition
Real median hourly earnings from all wages and salaries for employees earning income from wage and salary jobs, as measured by the New Zealand Income Survey.
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 2006, half of all people employed in wage and salary jobs earned more than $17.00 an hour. The median hourly wage for male employees was $18.13, while for female employees it was $15.88.
Real median hourly earnings increased by $1.93 an hour or 13 percent in the nine years to June 2006. The increase over this period was greater for female employees (14 percent) than for male employees (8 percent). The ratio of female to male median hourly earnings rose from 83 percent in June 1997 to 88 percent in June 2006.
Figure PW3.1 Median hourly earnings from wage and salary jobs (in June 2006 dollars), by sex, June 1997 to June 2006
Source: Statistics New Zealand, New Zealand Income Survey
Age differences
In 2006, median hourly earnings from wage and salary jobs were highest at ages 35–39 years ($19.35 an hour). This compares with $10.50 for 15–19 year olds. The increase in real median hourly earnings between 1997 and 2006 was smaller for 15–24 year old employees (5 percent) than for older workers (11 percent for those aged 25–44 years, 9 percent for those aged 45–64 years and 20 percent for those aged 65 years and over).
Sex differences
In 2006, the difference between the sexes in median hourly earnings for wage and salary earners was most evident in age groups over 30 years. The gap was greatest at ages 50–54 years, where the ratio of female to male median earnings for employees was 78 percent. There was little difference between the earnings of men and women in age groups under 30 years.
Figure PW3.2 Median hourly wage and salary earnings, by age and sex, June 2006
Source: Statistics New Zealand, New Zealand Income Survey
Ethnic differences
In June 2006, Europeans had the highest median hourly earnings for wage and salary earners at $17.74 an hour. This was $2.59 and $2.18 an hour higher than the earnings of Māori and the Other ethnic group respectively. Median hourly earnings were lowest for Pacific peoples ($14.50 an hour).
Over the nine years to June 2006, increases in inflation-adjusted median hourly earnings from wage and salary jobs were highest for Māori and Pacific peoples (both 15 percent), followed by Europeans (13 percent). Employees from the Other ethnic group experienced the lowest increase in real median hourly earnings from wage and salary jobs (4 percent).
Regional differences
In 2006, workers in Wellington had substantially higher earnings than those in other regions. The median hourly wage for wage and salary earners was $18.75 in Wellington, $17.90 in Auckland, and $16.67 in Canterbury and Southland. Median hourly wages were lowest in Northland and Manawatu-Whanganui (both $15). Over the period 1998–2006, real median hourly wages increased most in Canterbury and Nelson/Tasman/Marlborough/West Coast. All regions experienced positive growth in real hourly wages over the period.
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