The Pacific Pay Gap is reflected in the economic disparities
experienced by Pacific peoples relative to non-Pacific
peoples. Over the course of a lifetime, unchanged pay gaps
can amount to large cumulative differences. On average, in
2021, Pacific men earned $19,500 less annually compared to
Pākehā men. Over the course of a lifetime, Pacific men earn
$364,786 less than Pākehā men. In 2021, Pacific women
earn, on average, $24,671 less than Pākehā men annually.
Over the course of a lifetime, this accumulates to $488,310
difference in lifetime earnings.
Recent research reveals that working households with
at least one adult of Pacific ethnicity experience the
highest poverty rate (at 9.5 percent) compared to Pākehā
households (at 5.9 percent).14 This shows the need for
further Government and private sector action to encourage
equality in employment for Pacific Peoples in Aotearoa New
Zealand.
Our Inquiry focused on the Pacific Pay Gap
In response to insights from the Talanoa report and
consistent sets of data showing a significant pay gap
between Pacific men and women and Pākehā men,
the Commission launched a national Inquiry into
the opportunities for closing the pay gap for Pacific
peoples working in the private sector.
The Inquiry focuses on the experience of Pacific
peoples as a matter of urgency, as they experience
the largest pay gaps compared to other ethnic
groups.
We note that Māori women also experience
significant pay gaps. The Waitangi Tribunal
is inquiring into the systemic discrimination,
deprivation and inequities experienced associated
with the alleged denial of the inherent mana and
iho of wāhine Māori through Wai 2700 – the Mana
Wāhine Kaupapa Inquiry. In addition, the Wai 2864
claim – which the Tribunal registered in January 2019
and is part of the Mana Wāhine Inquiry – calls on the
Crown to address inequities in employment suffered
by wāhine Māori.
We initially explored conducting an Inquiry into the
Māori and Pacific Pay Gap and the experiences of
both Māori and Pacific workers. However, due to the
wide-ranging and multi-year work that the Waitangi
Tribunal is undertaking, we did not want to replicate
an area it would be exploring in depth from the
distinct position of Tiriti rights.
We acknowledge and reaffirm the place of Māori
14
as Tangata Whenua and as the Indigenous peoples
of Aotearoa New Zealand. While we have restricted
our focus in this Inquiry to Pacific peoples, we think
that the findings and recommendations in this
report will also be useful in exploring and addressing
employment disparities faced by Tangata Whenua
and other minority ethnic groups in Aotearoa New
Zealand.
A note on data
The data we have drawn on in this report is available
in the public domain. It includes data published
by government and public sector agencies (such
as Stats NZ Household Labour Force Survey and
MBIE’s employment service data), non-governmental
organisation data and data we have commissioned.
Several of the tables and charts on labour market
patterns by ethnicity were prepared and provided
to us by the New Zealand Work Research Institute at
Auckland University of Technology.
This data is disaggregated by ethnicity and includes
data held or commissioned by public agencies about
Māori. While this Inquiry focuses on the Pacific Pay
Gap, we have also taken the opportunity to highlight
the pay gap for Māori – and for Māori women, in
particular.
We acknowledge that the data we have used in this
section is Māori data and recognise and respect
Māori data sovereignty in relation to it. This includes
Māori rights over the collection, ownership and
application of Māori data.
Plum, Alexander, Gail Pachecho and Rod Hick. In-work Poverty in New Zealand. Auckland: New Zealand Work Research
Institute, 2019, 25. https://workresearch.aut.ac.nz/__data/assets/pdf_file/0009/326709/In-work-Poverty-in-NZ_PDF.pdf.
Voices of Pacific peoples
23