Advertised salaries on Seek New Zealand have continued to grow at a robust pace in the August 2023 quarter, up by 5.1% year-on-year. This is the fastest growth on record in the Advertised Salary Index (ASI), with data starting in January 2016.

The ASI rose by 1.3% quarter-on-quarter (q/q), the same as the previous quarter (March to May), showing no sign of slowing.

Seek’s ASI is calculated for five regions of NZ: Auckland, Wellington, and the rest of the North Island, plus Canterbury and the rest of the South Island. All regions recorded growth in advertised salaries in the year to the August quarter. Auckland lagged behind the rest of the country, but at 4.7%, advertised salary growth was still strong. Canterbury (6.5%) and the rest of the South Island (6.2%) had the fastest advertised salary growth over the year. Rest of North recorded growth of 5.3% followed by Wellington at 4.8%.

Among the largest industries, engineering experienced the fastest growth in advertised salaries (7.6%), beating out healthcare & medical (7.3%). Advertised salaries in information & communication technology (ICT) have been relatively sluggish, up only 2.8% in the year.

Seek noted that the ASI in New Zealand is growing faster (5.1%) than in Australia (4.6%). Advertised salary growth has continued to accelerate, while in Australia it has flattened off after a very strong 2022.

The differences between New Zealand and Australia likely reflect a few factors. One is that inflation has been slightly faster in New Zealand (1.1% q/q in Q2 2023, vs 0.8% in Australia). Another is that minimum wages have increased slightly faster in New Zealand (7.08%) than in Australia (5.75%). Labour demand has been similar across both countries, with unemployment at very low levels, and job ads down by 25.9% since May 2022 in New Zealand and 24% in Australia.

Seek New Zealand country manager, Rob Clark, said, “Advertised salary growth in New Zealand remains strong, despite the slowing economy. In fact, New Zealand’s advertised salaries are rising faster than any point in the past six years, outpacing salary growth in Australia.”

“While wage growth is still not keeping up with inflation, our data suggests it may continue to rise from current levels,” Clark said. “All regions recorded strong growth over the past year, but the South Island outpaced the North, with advertised salaries in Canterbury rising 6.5% in the year to August.”