Employment marketplace SEEK says the growth of advertised salaries has slowed from a peak in late 2023.
Average advertised salaries rose 3.7% on an annual basis in the year to August 2024 while on a quarterly basis, advertised salaries growth was up 0.7% in August compared to May.
According to SEEK’s latest New Zealand Advertised Salary Index, it is the slowest annual rate of average salary growth since mid-2022.
The Advertised Salary Index measures the change in advertised salaries over time for jobs posted on SEEK in NZ.
The growth in advertised salaries has “slowed significantly” since peaking at 5.1% in November 2023, SEEK says.
“At 3.7% growth year-on-year, advertised salaries are currently outpacing the rate of inflation, but only just,” SEEK NZ Country Manager Rob Clark says.
Annual inflation was revealed to have fallen to 3.3% in July, the lowest rate it has been in several years.
SEEK’s index found Canterbury continued to outpace the rest of the nation, with average advertised salaries rising 4.4% year-on-year, but up only 0.8% compared to the past May quarter.
“Economic expansion in the Canterbury region over the past year is driving up advertised salaries, but this too has slowed in recent months,” Clark says.
Average advertised salary growth in the rest of the South Island, outside of Canterbury, remains very subdued and has decreased from 0.6% in the May quarter to 0.3% in the August quarter.
On an annual basis, the rest of the North Island outside of Wellington and Auckland, has recorded decent annual growth of advertised salaries – up 4.2% compared to August 2023, and a quarterly rise of 1%.
This is where average advertising salaries have been rising at their fastest pace most recently.
All regions in the country recorded a slowdown in average advertised salary growth compared to the previous quarter.
This is particularly so in Wellington where advertised salaries were only edged up 0.5% in the August quarter compared to May.
Year-on-year, advertised salaries in the capital have fallen from 5.3% to 3.4%.
SEEK says annual advertised salary growth has slowed considerably in Auckland and Wellington since peaking in November last year.
“As we move toward Christmas and the impact of last year’s growth diminishes, we can expect average advertised salaries to continue to slow,” Clark says.
SEEK found that year-on-year, the education & training and healthcare & medical industries recorded the greatest growth in average advertised salaries.
Education & training reported an 8.5% annual increase, with healthcare & medical close behind with an 8.2% annual rise.
Clark says this is a result of wage rises from collective agreements for education and healthcare workers that came into effect over the past year.
For education & training, SEEK says the strong annual growth will continue until at least the start of 2025, when the final wage rises for teachers under the current agreements take effect.
“For healthcare & medical workers, the robust wage growth over the past year reflects the agreed wage rises that were completed at the end of 2023,” SEEK says.
Other industries that recorded “relatively strong” average advertised salaries were in the professional services.
Insurance & superannuation reported a 7.7% year-on-year increase, while consulting & strategy average salaries rose 7.1%, and accounting had a 5% uptick compared to August 2023.
Three industries saw average advertised salaries decline compared to a year earlier. They were mining, resources & energy which reported a 2.7% fall, real estate & property which dipped 0.9%, and a 0.1% decrease for the advertising arts & media industry.
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