New Zealand Income Survey: June 2010 quarter

Introduction to the New Zealand Income Survey

The information in this release comes from the annual New Zealand Income Survey (NZIS), which is run during the June quarter (April to June) as a supplement to the Household Labour Force Survey (HLFS). The NZIS provides a snapshot of income statistics about people and households.

When information about income is interpreted, all the factors that can impact on income should be considered. Factors such as sex, age, industry, occupation, qualifications obtained, labour force status, part-time and full-time status, where people live, and ethnicity are all associated with the income people and households receive.

Median refers to the point where half the people receive more and half receive less than the stated amount. Since the 2008 release, a greater emphasis has been put on medians because extreme high or low amounts tend to have less influence on median amounts than they do on average (mean) figures.

Income averaged across all people from all sources includes those who have zero income for some income sources. Income averaged across those receiving income from a particular source only includes those who received income from that source.

For the NZIS June 2010 quarter, the industry and occupation classifications have been updated in line with Statistics New Zealand best practice. The NZIS now uses the ANZSIC06 industry classification with aggregated categories and the ANZSCO 2006 occupation classification. For further information about these standards please see the technical notes attached to this release.

Changes in this release are non-significant unless otherwise specified. For more information please see the technical notes.

Overview of the survey results

NZIS results for the June 2010 quarter showed a slight decrease in income (non-significant) from the June 2009 quarter. Median weekly income for all people from all sources was $529, as compared with the June 2009 quarter figure of $538 and the June 2008 quarter figure of $536. This is due to a small rise in wage and salary income that was offset by small decreases in other sources of income and an increase in the number of people receiving government transfers.

Median weekly wage and salary income for those receiving wage and salary income increased by 1.2 percent from the June 2009 quarter. This was the lowest recorded rise for this measure since the June 1999 quarter. Since the June 2009 quarter, the proportion of people receiving wage and salary income slightly decreased from 54.1 percent of people to 53.5 percent.

In the year to June 2010 quarter, median hourly earnings from wages and salaries rose $0.53 to $20.00; the smallest increase since 2003.

In each of the past two years there has been a significant increase in the number of people receiving income from government transfers. Since the June 2009 quarter the number of people receiving income from government transfers has increased by 54,400 (4.9 percent). Over two years the number of people receiving income from government transfers has increased by 88,100 (8.3 percent). Between the June 2009 and June 2010 quarters, median weekly income from government transfers for those receiving government transfer income slightly decreased by $4 to $269.

Median weekly income from self-employment for those receiving self-employment income has fallen significantly since the June 2009 quarter, down $38 (6.3 percent) to $575. Median weekly income from investments for those receiving investment income, dropped significantly by $3, to $12.

All people, all sources income

Median weekly income for all people from all sources (including those with no source of income) for the June 2010 quarter was $529. This was a slight decrease from the June 2009 quarter where it was $538, and the June 2008 quarter figure of $536.

There was no significant annual change in median weekly income for all sources for either males or females. In the June 2010 quarter the median weekly income from all sources for females was $426, and for males it was $675.

In the June 2010 quarter, out of all age groups:

• the largest annual decrease recorded was for the 20–24-year age group down $54 (12.5 percent) to $380
• those in the 60–64-year age group had the largest annual increase up $32 (6.1 percent) to $566
• those in the 35–39-year age group received the highest median weekly income of $777.

Average (mean) weekly income for all people from all sources increased slightly by $7 (1.1 percent) to $687 from the June 2009 quarter.

Sources of income

Wage and salary income makes up almost 70 percent of total income received by the working-age population of New Zealand (15 years and over). In the June 2010 quarter, 53.5 percent of people received wage and salary income which was a slight decrease on the June 2009 quarter figure of 54.1 percent.

Between the June 2009 and June 2010 quarters the proportion of people receiving income from government transfers increased slightly from 32.6 percent to 33.8 percent.

The proportion of people receiving self-employment income remained relatively unchanged from the June 2009 quarter at 10.3 percent. The proportion of people receiving income from investments fell by 2.9 percentage points to 30.7 percent.

Because it is possible for a person to receive more than one source of income, these percentages may sum to more than 100 percent.

Wage and salary income

Between the June 2009 and June 2010 quarter, there was a slight decrease in the proportion of people earning wage and salary income down 0.6 percentage points to 53.5 percent.

Since the June 2009 quarter, for people receiving income from wages and salaries, the median weekly wage and salary income increased 1.2 percent to $769, in the June 2010 quarter. This is the lowest movement for this measure since the June 1999 quarter. This movement is consistent with the annual all-salary-and-wage-rates change of 1.6 percent in the June 2010 quarter of the Labour Cost Index.

There were some significant changes in median weekly wage and salary income for both males and females, and in some age groups.

Since the June 2009 quarter, median weekly wage and salary income for those who receive wage and salary income increased significantly for both males and females up 4.0 percent ($34) to $900 and up 4.3 percent ($27) to $657 respectively.

Significant increases in median weekly wage and salary income since the June 2009 quarter were recorded for only two age groups:

• 50–54-years (up $61 to $880)
• 65 years and over (up $66 to $535).

The only ethnic group to record a significant change was the European ethnic group which rose $22, to $800 per week.

While there was no significant change in the number of people in full-time employment, there were significant movements in median weekly income for those in full-time employment.

Since the June 2009 quarter the median weekly wage and salary income for those in full-time employment increased by $30 (3.4 percent) to $900. Full-time median weekly wage and salary income for females increased significantly over this period up $25 (3.1 percent) to $825, while there was no significant change for males.

Since the June 2009 quarter there has been no significant change in median weekly income for those in part-time employment (currently $256) or the numbers of people in part-time employment (currently 438,400). 

Paid employment

Paid employment earnings consist of wage and salary and self-employment income. Auckland was the only regional council area with a significant change in the median weekly earnings for those in paid employment up by $14 (1.7 percent) to $800. Northland had the lowest median weekly income for those in paid employment at $698, while Wellington had the highest at $834. 

Hourly earnings

Hours worked and hourly earnings are two key factors that influence wage and salary income.

From the June 2009 quarter to the June 2010 quarter, median hourly earnings rose $0.53 (2.7 percent) to $20.00, while total hours worked slightly increased by 0.5 percent. This is the smallest percentage increase in median hourly earnings, since the $0.38 (2.5 percent) increase in the June 2003 quarter.

Median hourly earnings for females increased significantly by $0.78 to $19.00. This follows a $0.78 increase in the previous year, which was also a significant movement. Male hourly earnings increased significantly by $0.72 to $21.25 from the June 2009 quarter. There was no significant change for male hourly earnings between the June 2008 and June 2009 quarters.

Comparing female earnings with male earnings, the ratio of median hourly earnings in the June 2010 quarter was 89.4 percent, an increase from the June 2009 quarter ratio of 88.7 percent. The June 2010 quarter ratio was the highest seen since the survey began in 1997. The ratio of female to male wage and salary income for those in full-time employment, for both weekly and hourly income, is also at its highest recorded level since the NZIS began (at 86.0 and 93.2 percent respectively).

Note that these ratios do not take into account factors (such as age, occupation, industry, and qualifications gained) that can influence male and female earnings regardless of changes in levels of income.

Median hourly wage and salary income for those in full-time employment was up significantly by $0.75 (3.6 percent) to $21.58. Females in full-time employment had a significant rise in median hourly wage and salary income up $0.63 (3.2 percent) to $20.62, while there was no significant change for males.

Since the June 2009 quarter the European ethnic group was the only group to show a significant change in median hourly earnings, which increased by $0.65 to $20.65.

Three age groups had significant annual changes in median hourly earnings from wages and salaries:

• the largest increase was for those in the 50–54-year age group, up $1.12 to $22.22
• the second largest increase was for the 15–19-year age group, up $0.25 to $12.75. This increase is likely to reflect the rise in the minimum wage of $0.25 to $12.75 just prior to the start of the survey period
• those in the 60–64-year age group had the only decrease, down $0.05 to $19.95.

Only three of the nine major occupation groups had significant increases in median hourly earnings:

• machinery operators and drivers, up $0.86 to $18.00
• community and personal service workers, up $0.75 to $15.75
• labourers, up $0.38 to $15.15.

Only three out of 17 industry divisions had significant increases in median hourly earnings for people receiving income from wages and salaries:

• the education and training industry had the greatest significant change up $1.78 to $23.78
• wholesale trade was up $1.38 to $22.00
• retail trade and accommodation was up $0.50 to $14.50.

Government transfers

Government transfers include income from benefits, student allowances, Accident Compensation Corporation, New Zealand Superannuation, Veteran's and war pensions, and tax credits such as Working for Families.

The proportion of people receiving income from government transfers has increased since the June 2009 quarter from 32.6 percent to 33.8 percent. A higher proportion of females (39.5 percent) than males (27.7 percent) received government transfer income in the June 2010 quarter.

Since the June 2009 quarter the number of people receiving government transfers has increased significantly by 54,400 (4.9 percent). Both the number of males and females receiving government transfers increased significantly up 28,400 (6.6 percent) and 26,000 (3.9 percent) respectively. These increases follow-on from increases in numbers between the June 2008 and June 2009 quarters.

Since the June 2008 quarter the number of people receiving income from government transfers has increased significantly by 88,100 (8.3 percent). Over this period the number of males receiving income from government transfers has increased by 49,000 (11.9 percent), while the number of females has increased by 39,100 (6.0 percent).

Median weekly income from government transfers for those receiving income from government transfers, slightly decreased, down $4 (1.6 percent) to $269 from the June 2009 quarter. Males had a significant decrease in government transfer income for those receiving government transfer income, down $14 (5.3 percent), while there was no significant change for females. This change in income is due to a change in the composition of the sources of government transfers received.

Since the June 2009 quarter, the number of people receiving government transfers rose significantly for the following age groups:

• the 15–19-year age group increased by 13,100 people
• the 20–24-year age group increased by 17,600 people
• the 65 years and over age group increased by 17,400 people.

The significant rises for the 15–19-year age group and the 20–24-year age group are consistent with the fall in the labour force participation rate and an increase in the unemployment rate for these groups in the HLFS June 2010 quarter.

Self-employment

For those receiving income from self-employment, median weekly income fell significantly, down $38 (6.3 percent) to $575. While there was no significant change for females, income from self-employment for males decreased significantly by $31 (4.3 percent) to $671.

Two age groups recorded significant changes in median weekly income from self-employment, for those receiving income from this source:

• those in the 40–44-year age group had a decrease of $288 to $479
• those in the 55–59-year age group had an increase of $153 to $767.

Investment income

Investment income includes, but is not restricted to, interest from banks and other financial institutions, dividends from shares, and income received from stocks, managed funds, non-business related building rent, and leased land.

Between the June 2009 and the June 2010 quarters, median weekly income from investments, for those receiving investment income dropped significantly by $3 to $12. Since the June 2008 quarter, income from this source has fallen from its highest recorded level of $19 to $12 (investment data collection began in the June 2002 quarter). For males this source of income has decreased by $4 to $13 since the June 2009 quarter. For females it decreased by $3 to $10.

For three age groups there were significant changes in median weekly income from investments for those receiving investment income:

• the 50–54-year age group, down $7
• the 20–24-year age group, down $2
• the 35–39-year age group, down $1.

Since the June 2009 quarter, the number of people receiving income from investments decreased significantly down 81,700 (7.2 percent). There were significant decreases for both males and females, down 37,800 (6.8 percent) and 43,900 (7.7 percent) respectively.

The only ethnic group to have a significant change in the number of people receiving investment income were those in the European group, down 87,200 (8.9 percent).

Household income

The median weekly household income from all sources was relatively unchanged in the June 2010 quarter compared with the June 2009 quarter. In the June 2010 quarter it was $1,236, which was similar to the June 2009 quarter median of $1,234.

Average (mean) weekly household income from all sources was $1,484 in the June 2010 quarter, which was similar to the June 2009 quarter figure of $1,480.

 

For technical information contact:
Phillip Marshall or Karin Henshaw
Wellington 04 931 4600
Email: info@stats.govt.nz

Next release...

New Zealand Income Survey: June 2011 quarter will follow the Household Labour Force Survey: June 2011 quarter release.