Growth seen further lifting average wage by $7,500 15 Apr 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Sick leave expected to increase during World Cup Sport
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- Positive indicators in labour market Recruitment
The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its economic growth forecasts over the next four years, Finance Minister Bill English says.
This follows a $3,000 increase in the average wage to $54,700 a year over the past two years.
In a pre-Budget speech to the Wellington Employers’ Chamber of Commerce today, he notes that Treasury expects the economy to grow by between 2 per cent and 4 per cent a year out to 2018.
“Quarterly GDP or current account statistics are not, in themselves, what matter to families,” Mr English says. “Jobs, higher incomes and opportunities to get ahead are what really matter.
“Everyone’s situation is different and many families are still finding times are challenging. But the benefits of a sustainably growing economy are tangible and meaningful,” Mr English says.
Over the past two years, as economic momentum has picked up, the average full-time wage has increased from $51,700 a year to $54,700 a year – an increase of $3,000.
Looking ahead and based on its economic growth outlook, Treasury’s preliminary Budget forecasts show the average wage will rise to around $62,200 a year in four years’ time – an increase of a further $7,500 by 2018.
“So if you take that six-year period as a whole, the average wage will have gone up $10,500, or around 20 per cent, compared to inflation of around 12 per cent over the same period,” Mr English says.
“The forecasts will also show around 170,000 more people will be working by 2018. Together with a falling unemployment rate, this will build on the 66,000 jobs created in the past year alone.
“That’s what a sustainably growing economy actually means for hard-working New Zealanders. And that’s why it’s important that we remain focused on our programme of considered and consistent change over time.”
As part of its programme to support sustainable economic growth, Mr English also confirmed that the National-led Government will be disciplined with new spending over coming years to avoid the Reserve Bank reacting by further tightening monetary policy and pushing up interest rates.
“The Budget next month will be about thoughtful targeted spending, not a spend-up. It will invest in better healthcare, more effective education, safer communities and less welfare dependency,” he says.
“We will have more to say about the Government’s future framework for fiscal policy in the Budget.
“As the Prime Minister confirmed two weeks ago, the Government will stick to its $1 billion Budget allowance for the 2014/15 financial year. This is the responsible thing to do.
“Imagine the effect on interest rates – and the rest of the economy – of a return to the $3 billion-plus annual spending allowances we saw under the previous Labour government from 2005 to 2008.”
By helping to restrict interest rate increases, the Government can make a significant and positive contribution to family budgets, Mr English says.
“Every one percentage point movement in mortgage interest rates is worth around $40 a week – or $2,000 a year – for a family with a $200,000 mortgage.
“So when you hear politicians promising to ramp up spending to pay for expensive election promises, you should remember that this would come at a significant cost to households and businesses.
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more