Children and Young People: Indicators of Wellbeing in New Zealand 2008

Economic security

Children without a parent in paid work
Children and young people with low incomes
Unemployment
Employment
Median hourly earnings

ISBN 978-0-478-33506-4 (Print)
ISBN 978-0-478-33507-1 (Online)

The other sections and the appendices of the Children and Young People: Indicators of Wellbeing in New Zealand 2008 can be found at www.msd.govt.nz.
Economic security 
Desired outcomes
All children and young people enjoy a secure standard of living that means they can fully participate in society. All young people achieve the transition to economic independence.
Introduction
Economic security refers to the material resources which children and young people need to thrive and participate in society. It includes access to adequate income to meet basic needs such as nutritious food, appropriate clothing, healthy housing, medical care, transport and communication and other goods and services that provide a decent standard of living in a developed country in the 21st century. 

Poverty during childhood, especially if prolonged, severe or occurring during the early years, can have lasting negative effects. It can affect children’s health and development and educational attainment and flow through to poorer employment and earnings in adulthood. Children have their own views on economic adversity. Research shows that what concerns children is not lack of resources per se, but exclusion from activities that other children appear to take for granted, and embarrassment and shame at not being able to participate on equal terms with other children.

For children, and for many young people under 25 years of age, economic security is dependent on the economic circumstances of their parents and caregivers. As children grow into adolescence and adulthood, having their own access to economic resources helps them establish an independent and secure future for themselves.

Paid work is the main route to economic security and it is important to social wellbeing in other ways. As well as providing income and regular social contact, employment can contribute to an individual’s sense of purpose, identity and self worth, especially if the work is satisfying and rewarding, and has opportunities for skill development. Conversely, unemployment is associated with poorer mental and physical health and lower levels of life satisfaction. Young people are a vulnerable group in the labour market because of their limited skills and experience compared to older age groups. Prolonged periods of unemployment at this age can have long-term negative impacts on their wellbeing. 

For many young people, especially those who no longer live with their parents, income from employment is a major determinant of their standard of living. Earnings from paid work enable them to engage in social and recreational activities, to support themselves while studying, or to save for future goals.

Indicators
There are five indicators in the Economic Security domain. 

The first indicator, children without a parent in paid work, recognises that employment income is the main factor determining adequate family income and children’s living standards.

Children and young people living in low-income households gives an indication of how equitably resources are distributed and how many children and young people are in households with incomes that limit their ability to participate fully in society. It is the same measure as that used in The Social Report 2008.

The third indicator, the unemployment rate, is a measure of overall economic conditions and of the ease with which youth who are seeking employment are able to obtain it. Specifically, it is the proportion of 15–24 year olds who are in the labour force (either employed or unemployed), and who are out of work and are actively seeking and available to start a job. This definition conforms closely to the international standard definitions specified by the International Labour Organization. In New Zealand it is referred to as the ‘official’ unemployment rate.

The fourth indicator, the employment rate, is the proportion of 15–24 year olds who are employed for one or more hours a week. As many young people, particularly those aged 15-19 years, are still enrolled in education, the youth employment rate is best considered in conjunction with the indicators on school retention and tertiary education. It is sometimes referred to as the ‘employment-to-population’ ratio and is one of the standard labour force measures used by the OECD.

Lastly, median hourly earnings is an indicator of the financial returns to employment for 15–24 year olds earning income from wage and salary jobs.

Children without a parent in paid work
Definition
The proportion of children under 15 years whose resident parent(s) are not in paid work (either unemployed or not in the labour force).
Relevance
Paid work is the main source of regular income for most parents.  Children living in families where market income is not the main source of income are at higher risk of experiencing low standards of living.
Current level and trend
In 2006, 17 percent of children under 15 lived in a family with no parent employed. This was an improvement on the level in 2001 (21 percent).  

During the 1980s, when economic and labour market conditions deteriorated, the proportion of children with no parent employed more than doubled.   In 1981, 10 percent of children lived with parents who were out of work.  By 1986 the level had risen to 14 percent and by 1991 it was 25 percent. The economic recovery that began in 1992 saw an increase in employment among parents. Over the period from 1991 to 2006, there was a steady decline in the proportion of children with no parent employed.  But in 2006, the level was still higher than it had been in 1986.

Figure ES1.1 Proportion of children without a parent in paid work, 1981–2006

Source: Source: Statistics New Zealand (1995) pp 36, 37; Statistics New Zealand (1998) p 60 
and unpublished census data
Differences by family type
Another factor that has influenced parental employment trends in the past twenty years is the increase in sole parenthood. Children in sole parent families are much more likely than those in two-parent families to have no parent employed (51 percent and 6 percent, respectively, in 2006).  Again, there has been considerable improvement since 1991, when the levels were 75 percent and 11 percent, respectively, for children in these family types. 
Ethnic differences
The relatively high levels of unemployment and sole parenthood among Mäori and Pacific peoples mean that children in these ethnic groups are more likely than other children to have no parent in paid work.  In 2006, 30 percent of Mäori children were in that situation, compared with 29 percent of Pacific children, 19 percent of Asian children, and 13 percent of European children. While still relatively high, levels of parental non-employment have fallen dramatically for Mäori and Pacific peoples since 1991, when 48 percent of Mäori children and 45 percent of Pacific children had no parent employed.

The increase in the proportion of children with parents out of work in the 1980s was particularly strong for Mäori and Pacific children living in two-parent families.  The high concentration of Mäori and Pacific people in manufacturing industries and production jobs led to greater job losses in these ethnic groups at that time.  In 1991 Mäori and Pacific children living in two-parent families were three times and four times more likely, respectively, to have both parents out of work than their equivalents in 1986.

Figure ES1.2, ES1.3 Proportion of children without a parent in paid work, 
by family type and ethnic group, 1986–2006

		
Source: Source: Statistics New Zealand (1995) pp 36, 37; Statistics New Zealand (1998) p 60 
and unpublished census data
Note: The scales in the two graphs are different.

Among children living with one parent in 2006, Mäori and Pacific children had the highest proportion of parents out of work (60 percent and 61 percent, respectively), followed by Asian children (58 percent) and European children (46 percent).  Comparative figures for 1991 were: Mäori children (84 percent), Pacific children (83 percent), Asian children (72 percent), and European children (67 percent).

Compared with the situation in 1986, there has been an improvement in all ethnic groups for children in one-parent families, and a recovery to 1986 levels for Mäori children in two-parent families. However, children of all other ethnic groups living in two-parent families remain more likely than were their counterparts in 1986 to have no parent employed.

Table ES1.1 Proportion (%) of children without a parent in paid work, by ethnic group, 1981–2006
Year	Ethnic group of child	
	European	Mäori	Pacific	Asian	Total	
1981	7	20	17	..	10	
1986	15	40	26	8	14	
1991	16	48	45	19	25	
1996	14	41	38	30	23	
2001	15	36	33	26	21	
2006	13	30	29	19	17	
Source: Statistics New Zealand (1995) pp 36, 37; Statistics New Zealand (1998) p 60 and unpublished census data
Note: In the sources for the 1981–1996 data, prioritised output for ethnic groups was used. Total response output has been used for the years 2001 and 2006, and for Asian children for all years from 1986 to 2006. Total response means that children identified with more than one ethnic group are counted once in each group reported.

Children and young people with low incomes
Definition
The proportion of dependent children aged under 18 years, and the proportion of young people aged 18–24 years, who live in households with equivalent disposable income net-of-housing-cost below selected thresholds.

Incomes are after-tax (disposable) and after deducting housing costs, and the incomes are adjusted for household size and composition.   The thresholds are set at 50 percent and 60 percent of the 1998 household disposable income median, with 25 percent deducted to allow for average housing costs.  The thresholds are adjusted for inflation to keep them fixed in real terms.  
Relevance
Insufficient economic resources limit people’s capability to participate in and belong to their community and wider society and otherwise restrict their quality of life.  Furthermore, long-lasting low family income in childhood is associated with negative outcomes, such as lower educational attainment and poorer health.
Current level and trends
In the year to June 2007, 16 percent of dependent children aged under 18 years lived in households with incomes below the 60 percent threshold. This was a substantial decline from 23 percent in the previous survey year to June 2004. The proportion of children with low incomes rose sharply from 1990, peaked in 1994 and has generally declined since then. While the 2007 rate was less than half the 1994 rate of 35 percent, it was still above the 1986 rate of 11 percent.

The trend is similar using the 50 percent threshold to define low-income households. In the year to June 2007, 12 percent of dependent children lived in households with incomes below the 50 percent threshold, a decline from 15 percent in 2004. The 2007 rate was less than half the peak rate of 26 percent in 1994, but higher than the 1986 rate of 7 percent.

Figure ES2.1 Proportion of dependent children under 18 years with net-of-housing-cost household incomes below selected thresholds, 1982–1998, 2001, 2004 and 2007

Source: Perry (2008) Table F5 (constant value)
Note: Between 1998 and 2007, the Household Economic Survey was conducted on a three-yearly basis.

For young people aged 18–24 years, the proportion living below the 60 percent threshold also declined considerably between 2004 and 2007, from 22 percent to 17 percent. After rising sharply from 8 percent in 1990 to 20 percent in 1994, the proportion of 18–24 year olds living in low-income households fell to 16 percent in 1998. It then increased again, reaching a second peak of 22 percent in 2004.
Age differences
In 2007, child poverty rates ranged from 20 percent for children aged 0–6 years, 16 percent for those aged 7–11 years and 14 percent for those aged 12–17 years. Poverty rates for younger children were consistently higher than those for older children in all years except 2004. For younger children (under 12 years), poverty rates have steadily declined since 1994. The rate for older children (12 to 17 years) fell between 1996 and 1998, then levelled off before falling again between 2004 and 2007.

Figure ES2.2 Proportion of children and young people with net-of-housing-cost household incomes below the 60 percent threshold, by age, 1982–1998, 2001, 2004 and 2007

Source: Perry (2008) Tables G2 A, H2 A
Note: Between 1998 and 2007, the Household Economic Survey was conducted on a three-yearly basis.

Table ES2.1 Proportion (%) of children and young people with net-of-housing-cost household incomes below the 60 percent threshold, by age, 1982–1998, 2001, 2004 and 2007
	1982	1984	1986	1988	1990	1992	1994	1996	1998	2001	2004	2007	
0–6 yrs	13	15	13	14	18	36	39	34	31	31	23	20	
7–11 yrs	13	17	12	13	19	33	38	33	29	29	25	16	
12–17 yrs	10	13	8	10	11	27	28	28	21	23	22	14	
0–17 yrs	12	15	11	12	16	32	35	32	27	28	23	16	
18–24 yrs	6	5	5	6	8	17	20	18	16	21	22	17	
Source: Perry (2008) Tables G2 A, H2 A
Note: Between 1998 and 2007, the Household Economic Survey was conducted on a three-yearly basis.
Differences by family and household type
Children in sole-parent families experience significantly higher poverty rates than those in two-parent families. In 2007, 42 percent of children living with one parent were in families with incomes below the 60 percent threshold, compared with 9 percent of those in two-parent families. Child poverty rates have declined substantially since 2001, particularly for children in two-parent families. In 2001, the rates were 64 percent and 20 percent respectively. For children in two-parent families, child poverty was lower in 2007 than it was in 1988, while for those in one-parent families it was still much higher. 

Around one in three sole parent families live in wider households with other adults. Children living in these families have significantly lower poverty rates than those in sole parent families living alone because of the wider household resources available to them (25 percent and 49 percent respectively).

Figure ES2.3 Proportion of children with net-of-housing-cost household incomes below the 60 percent threshold, by family type, 1988–1998, 2001, 2004 and 2007

Source: Perry (2008) Table H3
Notes: (1) Family here is ‘economic family unit’ (see Appendix 2 for definition). 
(2) Between 1998 and 2007, the Household Economic Survey was conducted on a three-yearly basis.

Other groups of children with higher than average proportions under the 60 percent threshold in 2007 were those living in households with 3 or more children (20 percent, compared with 14 percent of those with 1–2 children), and those in workless households (58 percent, compared with 8 percent of those with one or more adults employed full-time).
International comparison
For international comparisons, two measures are available.  They both use equivalent disposable household income without taking housing costs into account, and low-income thresholds are set relative to the median in the respective survey years (a moving line rather than a fixed line approach).  The OECD measure uses a 50 percent of median threshold and the European Union (EU) measure uses a 60 percent of median threshold. 

On the OECD measure (50 percent threshold), the average New Zealand child poverty rate through the mid-1990s (1994–1996) was 13 percent, rising to just over 15 percent in 2004, the year of the most recent OECD comparison. In 2004, New Zealand’s rate was above the OECD median (12 percent) and in the lower half of the OECD rankings (20th out of 30 countries). New Zealand’s rate was similar to those of Ireland and Germany (each 16 percent), Canada (15 percent) and Japan (14 percent), higher than that of the United Kingdom (10 percent) and well below the rate of the United States (21 percent). Sweden, Finland, Norway and Denmark had the lowest child poverty rates (4–5 percent). By 2007, the New Zealand rate was just under 15 percent.

Using the EU measure (60 percent threshold), New Zealand’s rate in 2004 (26 percent), was above the EU average (20 percent). New Zealand’s less favourable relative position in 2004 using the 60 percent threshold compared with its position using a 50 percent threshold shows that, compared to most of the other countries, New Zealand’s income distribution for households with children is more concentrated in the 50 percent to 60 percent of median range.  In the 2007 Household Economic Survey, the rate for New Zealand (EU measure, 60 percent threshold) had dropped to 20 percent, which is at the average for 25 EU countries in 2004. Given that the 50 percent rate remained steady between 2004 and 2007, this indicates that the concentration of households with children in the 50–60 percent zone reduced in the 2004 to 2007 period.

Unemployment
Definition
The youth unemployment rate is the number of 15–24 year olds in the labour force who are not employed but are actively seeking and available for paid work, expressed as a percentage of 15–24 year olds in the labour force. The labour force is defined as the sum of those who are employed and those who are unemployed.
Relevance
The unemployment rate is an important reflection of overall economic conditions and of the ease with which people are able to move into employment. As labour markets become more and more selective, a lack of relevant skills brings a higher risk of unemployment. Whatever the level of qualification, first experiences in the labour market have a profound influence on later working life. Getting off to a good start facilitates integration, while a failure can be difficult to make up.
Current level and trends
The annual average youth unemployment rate in 2007 was 9.7 percent. The youth unemployment rate declined steadily from 14.6 percent in 1998 to 9.3 percent in 2004 but has levelled off since then. The youth rate was still higher in 2007 than it was in 1986 (7.9 percent) and almost four times higher than the rate for those aged 25–54 (2.5 percent).

Figure ES3.1 Youth unemployment rate (15–24 years), 1986–2007

Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.
Sex and age differences
Youth unemployment rates have been slightly higher for females than for males since 2004. In 2007, the rate was 9.8 percent for females and 9.7 for males. Young men were more affected than young women by high rates of unemployment during the peaks in youth unemployment in 1991 and 1998.

Young people aged 15–19 years have higher rates of unemployment than those aged 20–24 years. In 2007, the unemployment rate for 15–19 year olds was 14.0 percent, more than double the rate for 20–24 year olds (6.2 percent).

Table ES3.1 Youth unemployment rate (%), by sex and age group, selected years 1986–2007 
Year	Sex (age 15–24)	Age group	
	Male	Female	15–19	20–24	15–24	
1986	7.9	8.0	11.5	4.9	7.9	
1991	20.6	16.8	21.9	16.5	18.8	
1996	12.4	11.1	15.7	9.1	11.8	
2001	12.1	11.5	15.5	8.9	11.8	
2006	9.3	10.0	13.7	6.4	9.6	
2007	9.7	9.8	14.0	6.2	9.7	
Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.
Ethnic differences
Unemployment rates remain higher for young Māori (aged 15–24 years) than for young Pacific peoples and young Europeans. In 2007, 17.1 percent of young Māori and 14.6 percent of Pacific young people were unemployed, compared with 7.7 percent of young Europeans.

Mäori and Pacific young people were more affected than young Europeans by the deterioration in youth unemployment in the late 1980s. Between 1999 and 2003, all three ethnic groups saw an improvement in youth unemployment rates but there has been little change since 2003. 

Figure ES3.2 Youth unemployment rate (15–24 years), by ethnic group, 1986–2007

Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.
Regional differences
In the year ended 31 December 2007, youth unemployment rates were highest (at 12.9 percent) in the Gisborne/Hawke’s Bay region and lowest (at 6.9 percent) in Canterbury. Over the period 1995–2007, the average rate of youth unemployment has been highest in the Northland, Gisborne/Hawke’s Bay and Bay of Plenty regions and lowest in Nelson/Tasman/Marlborough/West Coast and Auckland.
International comparison
In 2007, New Zealand’s unemployment rate of 9.7 percent was 12th lowest out of 30 OECD countries and below the OECD average of 11.9 percent. New Zealand’s rate was slightly higher than that of Australia (9.4 percent), but was lower than those of the United States (10.5 percent), Canada (11.2 percent) and the United Kingdom (14.4 percent). New Zealand’s youth unemployment rate was higher than the average for OECD countries between 1989 and 1994 and again between 1998 and 2000 but since 2001 it has remained below the OECD average. 

Employment
Definition
The youth employment rate is the proportion of young people aged 15–24 who are employed for at least one hour per week.
Relevance
The employment rate is the best available indicator of young people’s participation in employment. Earning income from wages or salaries contributes to young people’s economic independence. As many young people, particularly those aged 15–19 years,  are engaged in education that will positively enhance their future economic independence, the youth employment rate is best considered in conjunction with the indicators on school retention and tertiary education participation. 
Current level
In 2007, 58.6 percent of young people aged 15–24 were employed. The youth employment rate fell considerably during the economic downturn of the late 1980s and early 1990s, falling from 68.7 percent in 1986 to 53.7 percent in 1992. The rate recovered to almost 60 percent in 1996 but fell back during the economic downturn of 1997 and 1998. In 2000, the youth employment rate stood at 54.6 percent and had increased to 58.8 percent by 2006.

Compared with their counterparts in the mid-1980s, young people today are much more likely to be still at school or studying at tertiary institutions.

Figure ES4.1 Employment rate, young people aged 15–24, 1986–2007

Source: Statistics New Zealand, Household Labour Force Survey
Note: rates are annual averages for the calendar year.

While full-time employment became less common for young people between 1986 and 2007, part-time work became more common. Over this period the proportion of 15–24 year-olds in full-time employment decreased from 58.2 percent to 35.1 percent, with most of the fall occurring between 1986 and 1992. On the other hand, the proportion of young people in part-time employment more than doubled between 1986 and 2007, from 10.5 percent to 23.5 percent.
Age and sex differences
Young people aged 15–24 have lower rates of paid employment than older people. Within the youth population, young people aged 15–19 are less likely to be employed than those aged 20–24.  In 2007, less than half of youth aged 15–19 (48.4 percent) were employed, compared to 69.7 percent of young people aged 20–24, 82.2 percent of people aged 25–54 and 72 percent of those aged 55–64. 

Young men are more likely to be employed than young women. This reflects the fact that young women are more likely to be in education or caring for children. In 2007, 60.7 percent of young men aged 15–24 and 56.4 percent of young women aged 15–24 were employed.

Table ES4.1 Employment rate (%) by sex and age group, selected years 1986–2007
Year	Sex (age 15–24)	Age group	
	Male	Female	15–19	20–24	15–24	
1986	74.5	63.0	59.0	79.0	68.7	
1991	56.9	53.1	44.0	66.1	55.0	
1996	62.0	57.0	47.4	71.3	59.5	
2001	58.3	53.3	45.2	67.4	55.8	
2006	61.5	55.9	47.3	71.2	58.8	
2007	60.7	56.4	48.4	69.7	58.6	
Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.

Young men are more likely than young women to work full-time (30 hours or more per week) but the reverse is true for part-time work. In 2007, 40.8 percent of males and 29.2 percent of females aged 15–24 worked full-time, while 19.9 percent of males and 27.2 percent of females in that age group worked part-time. For both sexes the proportion in full-time work declined and the proportion in part-time work increased over the 1986–2007 period.

Reflecting their higher participation in education, young people aged 15–19 are less likely than those aged 20–24 to work full-time but more likely to work part-time. In 2007, 19.3 percent of 15–19 year-olds and 52.3 percent of 20–24 year-olds worked full-time, while 29.1 percent of 15–19 year-olds and 17.4 percent of 20–24 year-olds worked part-time.

Table ES4.2 Full-time and part-time employment rates (%) by sex and age group, 
selected years 1986–2007
Year	Sex (age 15–24)	Age group	
	Male	Female	15–19	20–24	15–24	
Full-time						
1986	65.6	50.9	43.5	73.6	58.2	
1991	43.5	36.3	22.7	57.1	39.8	
1996	44.8	34.7	19.7	59.1	39.7	
2001	39.8	29.3	18.7	51.9	34.6	
2006	44.4	30.0	20.9	55.1	37.3	
2007	40.8	29.2	19.3	52.3	35.1	
Part-time						
1986	9.0	12.1	15.5	5.3	10.5	
1991	13.4	16.8	21.3	9.0	15.2	
1996	17.3	22.3	27.7	12.1	19.8	
2001	18.5	24.0	26.5	15.5	21.2	
2006	17.1	25.9	26.4	16.1	21.4	
2007	19.9	27.2	29.1	17.4	23.5	
Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.
Ethnic differences
European youth are more likely to be employed than Mäori and Pacific youth.  In 2007, 66 percent of European youth aged 15–24 were employed, compared to 48.7 percent of Mäori youth and 44.7 percent of Pacific youth. Young people in each ethnic group experienced a decline in employment rates between 1986 and 1992 and despite subsequent increases, rates for each group in 2007 remained below those of 1986.

Figure ES4.2 Employment rates, young people aged 15–24 by ethnic group, 1986–2007

Source: Statistics New Zealand, Household Labour Force Survey
Note: Rates are annual averages for the calendar year.
Regional differences
Youth employment rates vary across different regions of New Zealand. In 2007, young people aged 15–24 in Canterbury were most likely to be employed (67.2 percent) followed by those in the Nelson/Tasman/Marlborough/ West Coast region (63.3 percent). Employment rates were lowest for young people in Auckland (52.9 percent) and Wellington (56.8 percent). 
International comparison
In 2007, New Zealand’s youth employment rate of 58.7 percent was the seventh highest out of 30 OECD countries and considerably higher than the OECD average of 43.5 percent. New Zealand’s rate was lower than that of Australia (64.2 percent), similar to that of Canada (59.5 percent) but higher than those of the United Kingdom (55.9 percent) and the United States (53.1 percent).

Median hourly earnings
Definition
Real median hourly earnings from all wages and salaries (before tax) for employees aged 15–24 years earning income from wage and salary jobs, as measured by the New Zealand Income Survey and the Consumers Price Index.
Relevance 
Earning their own wage or salary from employment is an important step towards financial independence for young adults.
Current level and trends
In June 2007, half of all young people aged 15–19 years with income from a wage and/or a salary earned more than $11.25 an hour from all wage and salary jobs. Half of all 20–24 year-old employees earned more than $14.19 an hour from wage and salary jobs.

In the ten years to June 2007, the inflation-adjusted median hourly earnings of young people aged 20–24 increased by 89 cents an hour or 7 percent. Over the same period, median hourly earnings for those aged 15–19 increased in real terms by $2.09 an hour, or 23 percent. 

In March 2001, the age of eligibility for the adult minimum wage was lowered from 20 to 18 years and the minimum wage for 16–17 year olds was raised from 60 to 70 percent of the adult minimum wage. In March 2002, the minimum wage for 16–17 year olds was raised to 80 percent of the adult minimum wage. On 1 April 2007, the minimum wage for employees aged 18 years and over was $11.25 an hour, while the minimum wage for 16–17 year olds and people over 16 in training was $9 an hour.

Figure ES5.1 Real median hourly earnings from wage and salary jobs (in June 2007 dollars), by age, June 1997 to June 2007

Source: Statistics New Zealand, New Zealand Income Survey
Sex and ethnic differences
In June 2007, males aged 15–24 earned a median of $12.91 while females earned $12.32. Since 1997, the median hourly earnings of females aged 15–24 have been slightly below those of young males in every year except 2000 and 2001, when they were equal. Over the ten years to June 2007, the median hourly earnings of 15–24 year old males increased by 8 percent, while the earnings of females in the same age group increased by 7 percent. 

In June 2007, median hourly earnings were $12.92 for European youth, $12.36 for Māori youth, $13.00 for Pacific youth and $11.99 for youth from Other ethnic groups (including Asian). Allowing for possible sampling error, most of these differences are not statistically significant. Between June 1997 and June 2007 the real median hourly earnings of 15–24 year olds increased by 10 percent for Europeans. The increases for youth from Māori, Pacific and Other ethnic groups are not statistically significant. 

Table ES5.1 Real median hourly earnings (June 2007 dollars) of 15–24 year olds from wage and salary jobs, by sex and ethnic group, June 1997 to June 2007
Year	Males	Females	Total	European	Māori	Pacific people	Other	
1997	11.91	11.52	11.67	11.79	11.55	11.61	10.75	
1998	12.08	11.43	11.79	12.00	11.72	11.48	10.87	
1999	12.13	11.52	11.80	11.54	12.13	12.00	12.13	
2000	11.87	11.87	11.87	11.87	11.87	11.87	11.87	
2001	11.52	11.52	11.52	11.52	11.52	11.52	11.52	
2002	11.75	11.30	11.39	11.75	11.30	11.75	11.02	
2003	12.24	11.68	11.91	12.24	11.12	12.09	11.12	
2004	12.45	11.82	12.02	12.07	12.15	12.17	11.25	
2005	12.69	11.63	12.37	12.64	11.80	12.16	11.63	
2006	12.74	12.23	12.23	12.23	12.23	12.23	12.23	
2007	12.91	12.32	12.50	12.92	12.36	13.00	11.99	
Source: Statistics New Zealand, New Zealand Income Survey