Editorial: Bay's wages remain static

Tauranga Chamber of Commerce chief executive Dave Burnett. Photo / George Novak

The Bay economy is bouncing back strongly and so is the local job market but not everyone is benefiting.

Yes, job numbers are up but wage rates appear to be static.

Recruitment agencies say the steady stream of workers relocating to the area combined with the healthy supply of labour means there is little incentive for employers to offer pay rises.

Lower paid and unskilled jobs are most affected.

Statistics New Zealand's June 2014 labour cost index report said salary and wage rates including overtime had risen across all sectors by 1.7 per cent nationally from the previous year.

In contrast, the number of jobs being advertised rose 13 per cent in the Bay of Plenty in the year to July, according to SEEK data.

The trend is concerning because, as commentators have pointed out before, wage levels are lagging in Tauranga. Civic leaders have identified this as one of the key issues that needs to be confronted to create a positive economy.

Commenting on the Bay economy in June this year, Tauranga Chamber of Commerce chief executive Dave Burnett said the Bay had developed a reputation for low wages and lack of opportunity for highly-skilled jobs.

He noted skilled and well-educated 30-somethings were moving to Tauranga because they loved the lifestyle but complained it was hard to get decent full-time work and can't understand why wages are so low when they end up doing the same high-level work as they do in a big city.

Clearly, we want to keep highly skilled people in the region because they help boost the economy but they will not stay if they cannot earn a decent living.