Covid-19 has contributed to median incomes falling for the first time since records began in 1998, says Stats NZ.
Median weekly incomes were lower in the June 2020 quarter than they were a year ago, down 7.6 per cent to $652 a week, according to Stats NZ data.
The measure captures income from wages and salaries, government benefits, such as Superannuation and Jobseeker Support, and self-employment.
'A number of factors have contributed to this fall, such as people away from jobs without pay due to the COVID-19 pandemic and more people receiving government transfers,” says labour market statistics manager Andrew Neal.
'More self-employed earners were seen in lower income brackets as well, with median weekly incomes down almost $100 a week.”
Median weekly earnings from wages and salaries increased 4.3 per cent in the June 2020 quarter, along with income from government benefits, up 6.7 per cent since 2019.
In contrast, self-employed earnings dropped 12.5 per cent.
While earnings from wages and salaries appear to have risen, this is mainly because many people from lower-income industries reported no earnings, says Stats NZ.
People who said they did not have any income were not included in the figures for wages and salaries, therefore lifting the median weekly income. However, they were included in the overall income measure.
More people receiving government benefits will also have brought the overall median down, as the amounts they receive tend to be less than those from other income sources, says Andrew.
Median earnings from both weekly and hourly wages and salaries increased over the year and broadly affected most age groups. Median weekly earnings rose $44 to $1,060. Median hourly earnings increased $1.47 to $27 per hour.
The increase in median wages and salaries is shadowed by a sharp rise in paid employees who reported no hours worked and no wage and salary income.
The number of people in such circumstances increased 54,700 to 127,300. Of these, 76,300 said that it was due to COVID-19.
'People reporting the pandemic as their reason for being away from their jobs and not being paid were more likely to be from younger age groups, and the retail trade and accommodation industry,” says Andrew.
The gender pay gap was steady at 9.5 percent in the June 2020 quarter and has remained relatively the same since 2017.
Hourly earnings from wages and salaries rose by a similar amount for both men and women.
In the June 2020 quarter, median hourly wage and salary earnings rose $1.26 to $28.26 for men, and $1.07 to $25.57 for women.



2 comments
Don’t worry
Posted on 27-08-2020 08:30 | By Slim Shady
We will all be beneficiaries soon anyway. Taxing “the rich” won’t go far. We will be working the crops in the paddocks for the cooperative. Two weeks holiday a year in the state camp.
Slim!..how can you say that..!
Posted on 27-08-2020 20:14 | By groutby
...how could we possibly deserve as much as two weeks holiday :)
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