Advertised Salary Index May 2023
The SEEK NZ Advertised Salary Index (ASI) measures the growth in advertised salaries for jobs posted on SEEK in New Zealand. This report examines national trends up to the quarter ending May 2023. The next quarterly SEEK ASI report will be released in September.
NATIONAL ADVERTISED SALARY TRENDS
Advertised salaries grew by 4.7% in the year to May 2023[1], the fastest annual growth recorded since 2016.
Quarter-on-quarter growth of 1.0% has slowed slightly from the previous quarters.
REGIONAL ADVERTISED SALARY TRENDS
Advertised salaries are growing at a solid pace in every part of New Zealand.
advertised salary growth, but the gap between Wellington and the rest of the country has shrunk.
INDUSTRY ADVERTISED SALARY TRENDS
Construction had the fastest advertised salary growth of any large industry at 6.6%.
ANALYSIS
Advertised salaries have grown fastest (4.9%)
SEEK NZ Country Manager, Rob Clark, says:
“Although the year-on-year growth in advertised salaries is the fastest on record, we do see signs that salaries are starting to cool. The quarter-on-quarter growth in the SEEK Advertised Salary Index peaked in the May quarter of 2022 and has declined since.”
“The ASI is a leading indicator of overall wages growth, which suggests wages growth may be nearing a peak in New Zealand.
“Advertised salary growth has been strong in every part of New Zealand – but still lags behind the cost of living – with the Consumer Price Index at 6.7% in March 2023.”
NATIONAL ADVERTISED SALARY TRENDS
Advertised salaries are growing at a solid pace, up 4.7% in the year to the May quarter 2023. Growth in the ASI dipped below 2% in 2020 but has picked up strongly since. Strong demand for labour has pushed year-on-year advertised salary growth to its highest recorded level.
Figure 1: Year-on-year growth of SEEK ASI
Note: Smoothed seasonally adjusted data (‘trend’).
Source: SEEK.
Although the year-on-year growth in advertised salaries is the fastest on record, much of this reflects rapid growth during 2022. The quarter-on-quarter growth rates have declined a little since their peak, with advertised salaries rising by 1% in the May quarter.
Figure 2: Quarter-on-quarter growth of SEEK ASI
Note: Smoothed seasonally adjusted data (‘trend’).
Source: SEEK.
Advertised salary growth is lagging inflation. The Consumer Price Index (CPI) rose by 6.7% in New Zealand in the year to the March quarter 2023[2], outpacing the 4.7% growth in advertised salaries.
The SEEK ASI has picked up further and faster than Stats NZ’s Labour Cost Index (LCI). The LCI measures the change in wages for all jobs, whereas the SEEK ASI measures the change in advertised salaries for vacant roles. Advertised salaries tend to respond more quickly to changes in market conditions than wages for existing staff.
Figure 3: Year-on-year growth of SEEK ASI compared to Labour Cost Index
Note: SEEK ASI is smoothed seasonally adjusted data (‘trend’). LCI is not seasonally adjusted.
Source: SEEK and Stats NZ.
REGIONAL ADVERTISED SALARY TRENDS
The SEEK ASI is calculated for five regions of New Zealand: Auckland, Wellington, and the rest of the North Island, plus Canterbury and the rest of the South Island. Advertised salary growth has been strong across the country.
In the South Island outside Canterbury growth has picked up sharply after being relatively sluggish in early 2022.
Wellington (4.2%) continued to lag other parts of the country, driven in part by slow advertised salary growth for Government roles, but the gap between Wellington and elsewhere has shrunk.
Table 1: SEEK ASI by region
Source: SEEK.
Figure 4: Year-on-year growth of SEEK ASI by region
Note: Smoothed seasonally adjusted data (‘trend’).
Source: SEEK.
INDUSTRY ADVERTISED SALARY TRENDS
A range of industries related to home building (Construction; Engineering; and Design & Architecture) have also seen strong advertised salary growth over the year. Advertised salary growth continues to be incredibly strong in Advertising, Arts & Media, up 7% year-on-year; this is a relatively small industry, so salary trends can be somewhat volatile.
These industries have been most affected by the slowdown in economic activity as interest rates rise, and have been less affected by minimum wage rises than some other industries.
Table 2: SEEK ASI by industry
Source: SEEK.
ANALYSIS: ADVERTISED SALARY GROWTH BY SALARY BAND
This was the fastest growth of any salary band, with the highest experiencing growth of 4.4%.
This strong advertised salary growth for relatively low-paid roles reflects strong demand for labour in industries such as Hospitality & Tourism, plus relatively large increases in the New Zealand minimum wage, which increased by 7% .
This pattern – of advertised salaries at the bottom end rising faster than at the top end of the salary spectrum – has been consistent the past two years. In total, advertised salaries have risen 15.7% since Q1 2020 for the lowest paid roles, while the highest paid is only up 6.4% in total over the same period.
Figure 5: Cumulative growth of SEEK ASI by salary band since Q1 2020
Note: Smoothed seasonally adjusted data (‘trend’).
Source: SEEK.
For more information about the SEEK NZ Advertised Salary Index and how it is measured see here.
Disclaimer
The data should be regarded as standalone information and should not be aggregated with any other information.The data is given in summary form and whilst care has been taken in its preparation, SEEK makes no representations about its completeness or accuracy. SEEK expressly bears no responsibility or liability for any reliance placed on the data, or from the use of the data.
[1] The May quarter includes March, April, and May 2023.
[2] Source: Stats NZ.