Economy gains shared by all

4 October 2007

Economy gains shared by all

Statistics NZ’s latest income survey shows gains are being spread across the workforce, according to Business NZ.

Chief Executive Phil O’Reilly says the NZ Income Survey for the June 2007 quarter shows increases in incomes for all types of income earners – those earning incomes from wages, salaries or investments, men and women and all ethnic groups.

“Clearly the tight labour market is a big reason for the increases, but the survey also shows an increase in investment income, possibly indicating the growth of an ‘investment culture’ in New Zealand, which would be a positive thing.

“Regarding the wage and salary increases - it will be important to have matching productivity increases in order to maintain New Zealand’s international competitiveness.

“One concern from the data is the fact that ‘Government transfers’ – welfare payments –have gone up significantly. The proportion of the working-age population receiving these transfers has climbed 2% both this year and the year before and now stands at 32%. I would have hoped that if the economy is going well, that we would see fewer, not more, supported by the state.”

ENDS

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