6 Feb 2014

Pay rises predicted in 2nd half of yr

8:26 am on 6 February 2014

Economists predict improved economic growth will eventually translate into higher wages - but not until the second half of the year.

Statistics New Zealand figures show despite falling unemployment and a strengthening labour market, the average increase in wages is at its lowest level in more than 13 years.

While 54% of employees received a pay rise last year, the increase was smaller than previous years.

However, Deutsche Bank chief economist, Darren Gibbs says the benefits of a strengthening economy and falling unemployment usually take 12 months to take hold. He predicts steady wage rises in the latter part of this year.

Overall, the average hourly wage rate for workers is now $28.03.