Last week I wrote about how the total sum of all wages paid to workers in Australia grew 2.5% last year while the national pay packet shrank by 0.4%.
On a similar note, the Sunday-Star Times had a piece on the average full time equivalent ordinary time wage. In NZ, that rose 2.86% after inflation – from $891 to $934 – over the past year. In Aussie, it was 3.6% above inflation – from$1159 to $1226.
Now, I wouldn’t use the full-time equivalent ordinary time wage because it is too narrow. It only looks at FTE, so it misses the effect of people working fewer hours, doesn’t count overtime, and fails to account for all the people losing their jobs and either becoming unemployed or leaving the labour-force. That’s why I looked at the total national pay packages. They give a more complete picture of the situation, and it’s worse for New Zealand.
Nonetheless, the article is right – the wage gap with Australia is widening – and it points out that there’s no sign of a turnaround on the horizon with unemployment still rising here (it’s now 2% higher than in Aussie) and businesses here remaining negative on wage increases compared to their counterparts across the ditch.
When will John Key admit that he sold us a lie? When will the media call on him to resign if no progress is made on the one substantial promise of a ‘brighter future’ at he made?