29 Jun 2015

Few NZ workers getting pay rises

1:45 pm on 29 June 2015

The number of workers getting a pay rise in the last year has dropped sharply, pushing jobs confidence to a two-year low.

The Westpac McDermott Miller Employment Confidence Index fell nearly 3 points to 102.8 in the three months to June, compared with the previous quarter.

A figure above 100 means there are more optimists than pessimists.

Westpac senior economist Satish Ranchhod said the main concern weighing on workers' confidence was weak earnings growth.

"The number of workers who reported a wage increase over the past year is at its lowest since the global financial crisis.

"That could be a bit of a concern for the economy if it starts to pass through to spending," he added.

Mr Ranchhod said the recent rise in unemployment and low inflation have made it more difficult for workers to negotiate pay rises.