The salary boom could officially be over, according to Trade Me data.
After a record year for pay rises and job application numbers, salary growth is starting to slow, Trade Me data shows.
Trade Me Jobs spokesperson Patrick Cairns said in the last quarter of 2022 the national average advertised salary reached a new all-time high of $67,562 but was showing signs of slowing.
“This marks a 1%, or $613, increase when compared with the same period in 2021.”
In the July to September quarter, the rate of annual change was 4%.
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In October the national average salary was $67,056. In November it reached $67,836, before finishing off the year in December at $68,001.
The Gisborne region experienced the biggest average salary jump by 8% in one year.
Hawke’s Bay, Nelson/Tasman and Otago were closely behind, up 7%.
While most regions experienced advertised pay increases, Auckland (-3%) and Wellington (-5%) were the exceptions when compared with Q4 2021.
“Despite the drops, these remained the two highest paying regions, with Auckland’s average salary at $69,374 and Wellington’s at $69,734.”
MARK TAYLOR / STUFF
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In the sectors, the biggest pay increases were seen in hospitality and tourism, where the average salary was up 9% year-on-year to a new high of $58,994.
But Cairns expected salary growth to slow down this year.
“Despite reaching an all-time high in Q4, the rate of salary growth is already showing signs of slowing down, and we are likely to see this continue in the new year.”
The average number of job applications per listing also increased in Q4, up 38% year-on-year, while the number of jobs listed on the site nationwide fell by 12% when compared with the same period in 2021.
Looking around the country, Cairns said every region had an increase in applications in the last quarter of 2022 when compared with the same period last year.
“Gisborne (+58%), Hawke’s Bay (+56%), West Coast (+53%), and Auckland (+50%) saw the biggest jumps, with applications up more than 50% year-on-year.”
It was the same story across the sectors, with nearly every category seeing applications climb year-on-year.
“In our largest sector, trades and services, applications increased by 55% in Q4.”
Cairns said with sky-high salaries and lockdowns becoming a distant memory, New Zealanders were making the most of the current market conditions.
“With the border open now too, employers around the country are seeing the light at the end of the pandemic tunnel.
“There’s no denying it’s still a competitive market for employers, but with applications on the rise across the board, our data shows it is a great time to be looking for talent.
“We expect continued economic uncertainty, on the back of higher interest rates and the upcoming election, will see the overall job market remain reasonably strong, but not able to keep up with the highs we’ve seen in the past 12-18 months. ”