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Mary-Jo Tohill / Stuff
On April 1, the minimum wage was increased by almost 5 percent to $ 16.50 l & # 39; hour. The government said it wants to raise the minimum wage to $ 20 by the time of 2021.
The pace of wage increases could finally accelerate, as the rise in the April minimum wage must have helped push a key measure of wage inflation to a six-year high.
On Wednesday, Statistics New Zealand will release the force survey workforce, revealing estimates of the number of jobs created in recent months and the rate at which pay rates in the public and private sectors increase
While showing that the New Zealand economy continues to create thousands of jobs each month, the publication should reveal that the index of the cost of labor for private sector wages rose by more than 2% as of June 30, the largest annual gain since 2012.
Part of the increase is directly attributable to government policy. On April 1, the minimum wage was increased from 75 cents to $ 16.50 an hour, the first in a series of hikes aimed at raising the minimum wage to $ 20 at the time of day. 39; here 2021.
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Economists expect minimum wage and other policy increases continue to spur wage inflation in the coming years, ASB expecting early this month that government measures could add between 0.5% and 1% to inflation in the coming years. nnual wages up to 2021.
But the Chief Economist of Kiwibank Jarrod Kerr wage inflation "is not just a history of minimum wage", with a rate unemployment by 4.4 percent at the end of March, which was already falling to a level where economists expected it to increase the pressures for wage increases. The labor market is expected to tighten further during this period and add to underlying wage growth, "Kerr said.
" Companies that find it difficult to find adequate staff will be forced to pay for secure them. "at a nine-year low, although the decline may have paused in the three months leading up to June 30, most economists expect it to remain unchanged at 4.4% in the three months to June
About 90,000 in 12 months, roughly the rate at which the working-age population is increasing
The female-led government has targeted unemployment below 4 %, and BNZ economists have stated that it was possible before too much However, the fall in business confidence has raised fears that, in the face of rising costs of labor and to Other uncertainties, companies could reduce their hirings and their other investments
.The labor market was at a "uncertain" time, with low unemployment and companies reporting having difficulty finding staff [19659007] "But at the same time, there is in addition to evidence that the economy has lost ground. Westpac predicted that by the end of the year 2018, unemployment could rise slightly, reflecting the slowdown in economic growth, before the increase in budget spending leads to a further decline in unemployment in 2019 "reflecting the slowdown in economic growth, in the economic growth, before the increase in budget spending causes a further decline in unemployment in 2019".
Salary inflation has been exceptionally low in recent years despite strong economic growth, with record levels of migration that have kept compensation levels at a moderate level. But the annual net gains from migration have been falling for almost a year, falling to 65,000 by June 30, from just over 72,000 a year ago.
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