NZ weekly incomes dip over past year

Median weekly income for the self-employed fell

The median weekly income edged lower in the year to June, as more people started receiving money from the Government while the self-employed earned less and investment income fell.

Statistics New Zealand (SNZ) today said the median weekly income for all people from all sources fell between the June 2009 and June 2010 quarters by a "non-significant" 1.7 per cent to $529. That compares with $538 in the June 2009 quarter and $536 in the June 2008 quarter.

Council of Trade Unions policy director and economist Bill Rosenberg said the self-employed had done worst of all, with a sizeable fall in income of 6.3 per cent for the year.

"This shows the importance of wages and salaries not only to provide relatively secure incomes for people, but as a stabiliser in the economy in times of recession."

Median weekly wage and salary income, for those receiving it, rose by 1.2 per cent to $769 in the June 2010 quarter. That was the lowest recorded rise in the measure since the June 1999 quarter, SNZ said.

Rosenberg said the results also showed that households and the workforce had become more dependent on lower paid women's work during the recession.

This meant household income and the overall median wage had not risen nearly as fast, he said.

For those receiving it wage and salary income increased 4 per cent for men and 4.3 per cent for women, Rosenberg said.

Since the June 2009 quarter, the proportion of people receiving wage and salary income slipped from 54.1 per cent to 53.5 per cent.

The proportion of people receiving income from government transfers, such as benefits, rose to 33.8 per cent from 32.6 per cent in the June 2009 quarter.

Since the June 2009 quarter the number of people receiving government transfers had risen "significantly" by 54,400 or 4.9 per cent, while over two years the increase was 88,100 or 8.3 per cent, SNZ said.

Between the June 2009 and June 2010 quarters, median weekly income from government transfers, for those receiving it, edged down $4 to $269.

"Significant" age group rises in the number of people receiving government transfers since the June 2009 quarter included an increase of 13,100 people in the 15-19 age group, 17,600 in the 20-24 group, and 17,400 in the 65 and over group.

The rises in the 15-19 and 20-24 groups were consistent with the fall in the labour force participation rate and a rise in the unemployment rate for those groups, SNZ said.

For those receiving income from self-employment, median weekly income fell "significantly", down $38 or 6.3 per cent to $575. For those in the 40-44 age group self-employment median weekly income fell $288 to $479, while the 55-59 group recorded a rise of $153 to $767.

Median weekly income from investments, for those receiving it, fell "significantly" by $3 to $12. In the June 2008 quarter, income from investments had been at its highest recorded level of $19.

Since the June 2009 quarter, the number of people receiving income from investments fell "significantly" by 81,700 people, or 7.2 per cent.

The median weekly household income from all sources was $1236 in the June 2010 quarter, barely changed from $1234 in the June 2009 quarter, and still below the $1257 in the June 2008 quarter.

The average weekly household income from all sources was $1484 in the latest year, also barely changed from $1480 a year earlier.

- NZPA / NZ HERALD ONLINE