NZ Wages: Bigger Trans Tasman Wage Gap Bad For Business
March 12th, 2010
A new survey by accounting firm Grant Thornton show the wage gap with Aust is set to widen, and may herald the start of another brain drain from NZ. The survey found 78% of Aust businesses are set to increase wages either in line with inflation or higher, compared with 55% of NZ companies.
Coupled with Aust’s unemployment rate of 5.3%, compared with this country’s 7.3%, Aust businesses are having to lift wages to attract the best talent. NZ is an obvious recruiting ground for them. 23% of Aust companies intend increasing wages more than inflation, and 55% in line with inflation. Just 19% expect no increase.
By comparison, 12% of NZ firms expect to increase wages more than inflation, 43% in line with inflation and 41% to hold wages at present levels. Aust remuneration packages are 30%-plus higher than in NZ, making it harder for NZ businesses to compete for scarce talent.
Another indication of Aust’s economic besting of NZ is the fact in the past year 36% of Aust companies increased staff.
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