Wage rise points to local growth
Wages in Gisborne are on the up as the regional economy grows, new statistics show.
Latest regional gross domestic product figures show that from 2013 to 2018, Gisborne’s economy increased 27.5 percent (compared with the national increase of 30.9 percent). Its share of national GDP remained unchanged for the fifth year in a row — accounting for just 0.7 percent of national GDP.
Statistics New Zealand said the 2013 to 2018 increase was driven by fishing, forestry and mining; rental, hiring and real estate services, and agriculture.
Last year, Gisborne’s GDP increased 6.6 percent, driven by fishing, forestry, and mining; and rental, hiring, and real estate services.
That was the highest increase in three years, after a drop (from 5.7 percent rise to a 4.7 percent rise) in 2017.
Activate Tairawhiti general manager economic development Steve Breen said the region performed well against the national average, for both nominal GDP and per capita GDP.
Nominal GDP growth for the Tairawhiti Gisborne region for year ended March 2018 was 6.6 percent, compared to 5.5 percent nationally and 5.4 percent for the North Island.
Per capita GDP increased regionally by 5.3 percent, compared to 3.4 percent nationally — an increase in per capita income from $39,127 to $41,209, or $2082.
“The increase reflects the region overall, however individual incomes will vary.
“What we are seeing is increasing upward pressure on wages and salaries, as employers compete for talent to fill the jobs they have available.”
Mr Breen said the region was seeing the benefits of good prices across the “productive” sectors — sheep and beef, horticulture and forestry, coupled with strong tourism growth and additional roading funding.
“It is great for us to see as an economic development agency. Our focus is always on fostering a strong economy and enabling our business community, so to business owners out there who have yet to access our services, please get in touch.”
Activate Tairawhiti had two business growth advisers on staff, dedicated to helping businesses accelerate through the skills, expertise and funding available to them.
“These range from business mentoring to Callaghan Innovation research and development grants, capital raising and the Launch! coworking space.”
Nationally, for the first time, Otago’s percentage increase in nominal gross domestic product was the highest of all the regions (up 8.6 percent for the Year ended March 2018).
GDP per capita measures total economic output divided by the number of people. The Wellington region has the top spot for GDP per capita in 2018, ahead of Taranaki. Wellington’s GDP per capita rose to $71,622 in 2018, with Taranaki on $68,427, little changed from 2017.
Gisborne had the lowest GDP per capita ($41,209), compared with the national average of $58,778.