I recently asked why politicians always quote the average for wages, especially if they want to make it look as if an increase is benefiting all of us.
When you look up the figures from the Stats Dept, what do you find? (http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/LabourCostIndexSalaryandWageRates_HOTPMar14qtr/Commentary.aspx#annual)
The wage rates have grown at 1.6% for the year ending in the March quarter, 2014. Low and behold, this is slightly LOWER than the previous year when the rate was 1.7%. For those in the Public sector, the rate increased only 1.4%. Local governments kept up with the average, but central government were the most miserable with only a 1.1% increase in wages they offered –thank you Mr Key.
But what about my question as to how this is all distributed across society?
The annual MEDIAN (middle persons) increase is the lowest it has been for 13 years! In fact only 54% actually got an increase and the median annual increase for those was only 2.3%. (The mean {average} was a little higher at 3.1%.)
Too many figures?
The message seems clear. Just over half of people actually in work got an increase in wages last year, and that increase was predominantly to those getting better wages and not to the poorest. And if you work for the government you will be even worse off.