Lowest earners had biggest pay boost

Stuff reports:

The median weekly earnings from paid employment rose $44 to reach $924 a week between June 2015 and June 2016. That is the largest percentage increase since 2007.

But looking further into the data, of those on wages and salaries, those earning less than $500 a week had the biggest year-on-year percentage pay rise, up 4.8 per cent between June 2015 and 2016.

The median for that bracket increased from $271 a week to $284.

That was followed by a 2.6 per cent increase for those earning between $500 and $770. The median income in that bracket is now $670, compared to $653 a year ago.

Everyone earning more than $770 as week is now earning marginally less than they were the same time last year.

So why is this happening?

Economist Shamubeel Eaqub said it was a trend that had been seen internationally – job growth had happened in unskilled and manufacturing sectors and people were transitioning from benefits to employment, which increased their income.

Sounds good if correct.