The low-paid jobs where wages are rising fast

The New Zealand hospitality industry is battling a labour shortage which has been exacerbated by the border closure and the departure of many migrant workers. (Video first published in July 2021)

Wages for some of New Zealand’s worst-paid jobs are increasing almost twice as fast as the national average, data shows.

In the third quarter of this year, the national average salary was 7% higher than during the same period in 2020, according to Trade Me Jobs.

However, average pay for wait staff, baristas and bar staff, traditionally some of the lowest-paid roles, had risen by more than 12%.

The average salary across the wider tourism and hospitality sector was up by 13.3%.

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While retail assistants could expect to earn 11.3% more than two years ago, average pay across the entire retail sector was up a more modest 6.6%.

Trade Me Jobs sales director Matt Tolich​ said businesses had been struggling to find candidates across the board over the past couple of years.

It had been particularly tough to attract talent in the hospitality and tourism and retail sectors, which were heavily reliant on migrant workers, he said.

Christel Yardley/Stuff Average pay for wait staff and baristas has risen by 12% since 2020, Trade Me data shows.

“Growing salaries come down to employers using higher salaries as a tool to attract talent in the competitive market.”

Current conditions meant candidates had a lot of bargaining power, and it was a good time to reassess job options, or ask for a pay rise, Tolich said.

“Since the third quarter of 2020, we have seen the national average salary increase by 7% from $62,243 to $66,372.”

Data from recruitment website Seek showed 49% of jobseekers thought salary and compensation were more important now than pre-pandemic.

The main trigger for looking for a new job was “not getting paid enough” and candidates were looking for a 10% to 20% salary increase before they moved jobs.

But hospitality wages could be about to plateau, with Seek reporting a 12% fall in job listings in the category in September.

Rob Clark​, Seek NZ country manager, said the slump came after a significant rise in August.

“However, casual roles in the industry increased, as businesses look to hire short-term staff ahead of the busy summer and Christmas season.”

Retail job listings were also down 7% last month compared to August.

Across the board, job ads fell for only the second time this year, down 4% from August, but remained 22% higher year-on-year and 35% higher than September 2019.