15 Feb 2022

Trades sector sees wage growth across the board

7:05 am on 15 February 2022

The country's industrial and trades sector has seen near universal wage growth, with employers feeling the effects of a tight labour market.

workers with power tools on the building site

Photo: 123rf

Data from industrial recruitment agency OneStaff shows the national median hourly pay in the sector is now $27 an hour, up $2 from 2020/21.

Taranaki recorded the biggest increase, with the median up $4 to $28 an hour.

Auckland, Bay of Plenty and Wellington were level on $28 an hour, and Northland was the only region to decline, down $2 to $25 an hour.

OneStaff chief executive Jonathan Ives said while bigger cities paid the most, wage workers needed to consider other factors before choosing to relocate for work.

"Cost of living can outstrip wage gains extremely quickly. Workers who are considering relocating should be thinking more about places like Taranaki and Southland which are on pay parity, or close, with places like Auckland and Wellington," he said.

Ives said the wage pressure caused by the Covid pandemic was expected to stick around.

"The reality is even if there was a global panacea for Covid and everything went back to what was a 2019 normal, the effects of the large scale shutdowns, reconnecting and promoting New Zealand as a place of choice for migrants works, and competing against global demand for products and supply means that the talent demand will still remain high," he said.

Trades sector remuneration rate by location.

Trades sector median remuneration rate by location. Photo: Supplied / OneStaff

In addition, Ives said with the borders opening up there would also be competition for existing workers from other countries.

The survey also showed that it would take a company $5 per hour more to attract an employee from their current employer, while retaining staff was "significantly" cheaper.

Overtime culture also remained rife in New Zealand, the survey found.

OneStaff said two-thirds of workers received only their normal hourly rate for any overtime they do per month, as opposed to penal rates, such as increased pay that others received.

"It's surprising how many employees aren't getting some kind of penal rate or overtime rate and I think that it is something that employers need to look very carefully at," Ives said.