Pay Cut for One in Five Last Year, Base Pay Up

Media statement
Tuesday, November 10th, 2009

Twenty-two percent of 215 job positions surveyed are being paid less this year than last year, and a further nine per cent of jobs have had no pay rises this year, according to the annual National Employers Wage and Salary survey.

But employers said the average pay increase given this year overall was 2.5 per cent, said David Lowe, Employment Services Manager for the Northern Employers and Manufacturers Association. (The National Survey was taken in August.)

"The most common pay increase this year has been less than one per cent, though wage rises of three to four per cent resulted from increases awarded or locked in before the recession hit," Mr Lowe said.

"In addition, a comparison between the actual dollars paid in 2008 and 2009 shows people who changed jobs have often been hired on lower rates than the person they replaced.

"593 companies participated and provided data on 38,216 employees across 215 different positions in 18 industry sectors.*

"Total remuneration for many positions did not always follow the same path as base pay.

"Base pay rates in food retail have dropped 3.3 per cent with other retail, clerical and transport positions increasing by less than one per cent.

"Scarce money has been targeted at retaining skilled positions. For example, base pay for electrical/electronic and engineering roles went up 4.6 per cent and 5.6 per cent respectively.

"Businesses know that skills are the key to their recovery. Keeping them engaged with the business is important.

"Bonuses paid to senior managers were 34 per cent lower than last year, which more than cancelled out any increase in their base pay.

"Accounting and clerical positions also had any pay increase cancelled out by lower bonuses.

"Talk of green shoots appearing in the economy will take some time to flow through to jobs; only a third of employers expected to hire more staff in the year ahead.

"Redundancy as the reason for employees leaving more than doubled over the past year, from seven per cent in 2008 to 16 per cent in 2009.

"Fixed term contracts are also far more popular in the current climate; 19 per cent of people left their job because their fixed term contract ended compared to just two per cent in 2008."

ENDS

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