Products & services > Hot off the press > NZ Income Survey > New Zealand Income Survey: June 2006 quarter


Embargoed until 10:45am – 5 October 2006


New Zealand Income Survey


June 2006 quarter

Highlights  |  Commentary  |  Technical notes  |  Tables  | 


Commentary


All figures in this release refer to gross (before tax) income. People aged less than 15 years were excluded from the survey.
 

Changes to tables

In this release, the Average Weekly Income for All People by regional council area table (formally table 14) from the supplementary tables has been moved into the Hot off the Press tables and is now table 12. Table 3,  Average Weekly Income by Source for those receiving that source of income, is a new table that has been introduced to the supplementary tables. 


Changes in weekly income

In the June 2006 quarter, the average weekly income for all people from all sources was $610, an increase of 4.0 percent from the June 2005 quarter average of $586. Average weekly income from all sources in the June 2006 quarter was $754 for males and $473 for females. There has been an average annual increase in average weekly income from all sources across the June 2002 to June 2006 quarters of 4.4 percent.

Over the year, the increase in average weekly income from all sources for all people was due to an increase in the average weekly wage and salary income for all people (up $24), and specifically an increase in average weekly wage and salary income for females (up $28). The increase in average weekly wages and salaries for all people was caused by an increase in the number of people receiving wages and salaries income (up 4.9 percent), and, for those people, an increase in their average weekly wage and salary income (up 2.9 percent to $739). While the increase in the number of wage and salary earners was similar for males and females (up 5.2 percent and 4.5 percent, respectively), for those receiving wage and salary income, average weekly wage and salary income increased more for females (up 6.7 percent) than for males (up 0.4 percent). The larger increase for females was mainly due to compositional and other changes across and within the paid workforce, including relative changes within industries and occupations.

Two key factors influence average weekly wages and salaries income: the number of hours worked and hourly earnings. The average number of hours worked was unchanged from the June 2005 quarter, while average hourly earnings for wage and salary earners increased by 3.9 percent ($0.74) to $20.04. Driving the increase in average hourly earnings were average hourly earnings for females, which increased by 6.9 percent ($1.19) to $18.55, while average hourly earnings for males increased by 1.4 percent ($0.29) to $21.46.
 

Sources of income

Wage and salary income was the primary source of income in 2006, with 54.9 percent of people, receiving income from this source. Investment income was received by 32.4 percent of people, government transfers by 29.5 percent, self-employed by 11.4 percent, other transfers by 1.8 percent, and no source of income by 9.2 percent. The introduction of the Working for Families package has seen an increase in the number of people who are eligible for government transfers, and this is reflected in an increase in the proportion of people receiving government transfer income (up from 27.3 percent in the June 2005 quarter). It is possible for a person to receive more than one source of income.





Wage and salary income

Average weekly income from wages and salaries for those in paid employment increased from $592 in the June 2005 quarter to $619 (4.7 percent) in the June 2006 quarter. People in paid employment are defined as those who receive income from wages and salaries and/or self-employment.

Average weekly wage and salary income for people receiving income from wages and salaries was $739 in the June 2006 quarter, an increase of $21 (2.9 percent) on the June 2005 quarter. This is consistent with an increase of 3.6 percent in average weekly earnings over the same period, as measured by the Quarterly Employment Survey for the June 2006 quarter.

Average hourly earnings for people receiving income from wages and salaries in the June 2006 quarter were $20.04, an increase of $0.74 (3.9 percent) from the same period last year. This was mainly due to an increase for females of $1.19 (6.9 percent), whereas hourly earnings for males increased by $0.29 (1.4 percent).

Median hourly earnings also rose (up $0.90 to $17.00) with increases of $0.63 for males (to $18.13) and $0.88 for females (to $15.88). Comparing female earnings with male earnings, the ratio of median hourly earnings was 87.6 percent in the June 2006 quarter. Over the last 10 years (the life of the survey), the ratio between male and female median hourly earnings has improved, from 83.0 percent in the June 1997 quarter to 87.6 percent in the June 2006 quarter.

Industries with significant increases in average hourly earnings for people receiving income from wages and salaries were education (4.0 percent), wholesale and retail trade (5.3 percent), and other services (5.6 percent).

Significant increases in average hourly earnings for people receiving income from wages and salaries occurred in the following occupations: service and sales workers (6.1 percent) and elementary occupations (5.3 percent).


Distribution of average weekly income from all sources

Income quintiles divide the population into five groups by ranking people in order by the amount of income they receive. The bottom quintile (quintile 1) is the lowest 20 percent of the population, in terms of income, while the top quintile (quintile 5) is the highest 20 percent of the population. In the June 2006 quarter, the top quintile comprised those with weekly incomes of $920 and over, while those in the bottom quintile received weekly incomes of under $190.

In the June 2006 quarter, 11.3 percent of females were in the top quintile and 23.8 percent were in the bottom quintile. In contrast, 29.1 percent of males were in the top quintile and 15.8 percent were in the bottom quintile.





Dispersion of employment income

Typically, income from self-employment is more dispersed than income from wages and salaries. The June 2006 quarter figures continued to reflect this. The quintile ranges for those receiving income from self-employment and wages and salaries for the June 2006 quarter are shown in the table below. The bottom quintile includes those who receive a loss from self-employment income.

Weekly income

Self-employment

Wages and salaries

Quintile 1

under $192

under $354

Quintile 2

$192 to $498

$354 to $575

Quintile 3

$499 to $766

$576 to $759

Quintile 4

$767 to $1,150

$760 to $1,035

Quintile 5

$1,151 and over

$1,036 and over

 



Investment income

The average weekly income from investments for all people was $33 in the June 2006 quarter, compared with $31 in the same period last year. Income from investments was received by 32.4 percent of all people in the June 2006 quarter, compared with 29.2 percent in the June 2005 quarter. 

Investment income varies with age. The 60- to 64-year age group received the highest average weekly investment income of $88, whereas the 65 years and over age group received average weekly investment income of $66. All age groups under 30 years received an average investment income of $6 or less.

The average weekly investment income for those receiving investment income was $106. The age groups receiving the highest average weekly investment income for those receiving investment income were the 55- to 59-year and the 60- to 64-year age groups ($144 and $191, respectively). All age groups under 30 years received an average investment income of $31 or less.

Self-employed earners

In the June 2006 quarter, the proportion of people receiving self-employment income was 11.4 percent, down from 12.5 percent in the June 2005 quarter. This group received an average weekly self-employment income of $821, up from $815 for the same period last year.

The 45- to 49-year and the 55- to 59-year age groups had the highest proportion of people earning a component of their total income from self-employment in the June 2006 quarter (20.0 and 20.8 percent, respectively).


Government transfers

Government transfers include income from benefits, family support, student allowances, Accident Compensation Corporation, New Zealand Superannuation, and veterans and war pensions. The introduction of the Working for Families package has seen an increase in the number of people who are eligible for government transfers, and this is reflected in an increase in the proportion of people receiving government transfer income.

The percentage of people aged 15 years and over receiving income from government transfers in the June 2006 quarter was 29.5 percent, compared with 27.3 percent in the June 2005 quarter. A higher proportion of females (35.3 percent) received government transfer income than males (23.5 percent). Both of these proportions were higher than those recorded in the June 2005 quarter, which were 32.3 percent for females and 22.0 percent for males.

For those receiving income from government transfers, average weekly income from this source in the June 2006 quarter was $244, compared with $247 in the June 2005 quarter. The median income from government transfers for this group rose from $235 in the June 2005 quarter to $239 in the June 2006 quarter.


Ethnic group statistics

Average weekly income from all sources in the June 2006 quarter was $658 for European/Pākehā, $506 for Māori, $434 for Pacific peoples and $460 for the 'Other' ethnic group.

The following table compares the distribution of income by age group for Māori and the total population.

Average weekly income from paid employment for those in paid employment

Average weekly income for all people from all sources

Age group

Māori

Total population

Māori

Total population

15–24

$465

$442

$251

$287

25–34

$667

$771

$563

$667

35–44

$728

$883

$649

$797

45–54

$756

$863

$732

$814

55–64

$662

$789

$536

$681


The different age structures of the ethnic groups have an impact on income comparisons. The Māori, Pacific peoples and 'Other' ethnic groups have proportionally more people in the younger age groups, particularly the 15- to 24-year age group, who have lower average earnings. The majority of those aged 65 years and over are in the European/Pākehā ethnic group, for whom the major source of income is New Zealand Superannuation.

Age group statistics

In the June 2006 quarter, the highest average weekly income for all people from all sources was received by the 45- to 49-year age group ($827). Looking at each sex, for males, the 35- to 39-year age group received the highest weekly income from all sources ($1,065), and for females it was the 50- to 54-year age group ($624).







For people in paid employment, the 35- to 39-year age group received the highest average weekly income ($939), followed by the 45- to 49-year age group ($933) and the 40- to 44-year age group ($919). The lowest average weekly incomes for those in paid employment were received by the 15- to 19-year age group ($289) and the 20- to 24-year age group ($576). The highest average weekly income for those not in paid employment was $343, which was for people aged 65 years and over.

For full-time wage and salary earners, the 35- to 39-year age group had the highest average weekly wage and salary income ($1,003), and this age group received average weekly part-time wage and salary income of $369. For part-time wage and salary earners, the highest average weekly wage and salary income was received by the 30- to 34-year age group ($386).

Regional statistics

Average weekly income from all sources for all people in the June 2006 quarter was highest in Auckland ($625), Wellington ($672) and Canterbury ($642). The lowest was for Manawatu-Wanganui ($521).





Household statistics

The average weekly household income from all sources was $1,321 in the June 2006 quarter, an increase of 4.8 percent from the June 2005 quarter average of $1,260. Median weekly household income from all sources rose 8.6 percent (to $1,129). 'One parent with dependent children only' households received the lowest average weekly household income of $574, up from $537 in the June 2005 quarter, while ‘Couple with adult child(ren) only and other(s)’ received the highest average weekly income of $2,103, up from $2,031 in the June 2005 quarter.

For technical information contact:
Janelle Foster or Adele Dunleavy
Wellington 04 931 4600
Email: info@stats.govt.nz  


 



  New Zealand Income Survey: June 2006 quarter (pdf)



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