Covid 19 coronavirus: Kiwis' median weekly incomes fall for the first time

Median weekly incomes were down 7.6 per cent to $652 a week in the June 2020 quarter compared with the same period last year. Photo / File

Median weekly incomes fell for the first time on record as Covid-19 hit New Zealanders' back pockets, Stats NZ said.

Stats NZ labour market statistics showed median weekly incomes were down 7.6 per cent to $652 a week in the June 2020 quarter compared with the same period last year.

"A number of factors have contributed to this fall, such as people away from jobs without pay due to the Covid-19 pandemic and more people receiving Government transfers," labour market statistics manager Andrew Neal said.

"More self-employed earners were seen in lower income brackets as well, with median weekly incomes down almost $100 a week."

The measure captures income from wages and salaries, Government transfers (such as New Zealand Superannuation and Jobseeker Support), and self-employment.

Median weekly earnings from wages and salaries increased 4.3 per cent in the June 2020 quarter.

However, the increase in median wages and salaries is shadowed by a sharp rise in paid employees who reported no hours worked and no wage and salary income. This figure was 127,300 in the June 2020 quarter - of which 76,300 said that it was due to Covid-19 - up 75.3 per cent from 54,700 in 2019.

"People reporting the pandemic as their reason for being away from their jobs and not being paid were more likely to be from younger age groups, and the retail trade and accommodation industry," Neal said.

"Both these groups tend to have lower incomes."

Income from Government transfers was up 6.7 per cent from 2019, to $364 weekly. The number of people receiving Government transfers also rose, up 2.1 per cent to 1,200,300 people in the June 2020 quarter.

Self-employed earnings dropped 12.5 per cent.

"Self-employed people may be working fewer hours, have reduced their takings from business cashflows, or have had less business, among other reasons," Neal said.

The gender pay gap was steady at 9.5 per cent in the June 2020 quarter and has remained relatively the same since 2017.

Median hourly wage and salary earnings rose $1.26 (4.7 per cent) to $28.26 for men, and $1.07 (4.4 per cent) to $25.57 for women.

Median incomes have been measured by Stats NZ since 1998.