Why expert recommends asking for 7 percent pay rise right now despite recession fears

A business journalist says now is the perfect time to ask for a hefty pay rise despite fears of a looming recession.

The latest GDP figures have stoked fears a recession is just around the corner after New Zealand's Gross Domestic Product fell 0.2 percent in the first quarter of 2022.

While this doesn't put the country into recession, experts say it's likely we will see one when the next figures are released.

Despite the uncertain economic situation, business journalist Bernard Hickey told Newshub Nation rampant inflation and staffing shortages make now the perfect time to ask for a pay rise.

When Newshub Nation host Simon Shepherd asked whether Kiwis should be asking for a 6.9 percent increase to match inflation, Hickey said "absolutely".

"At the moment you're in hot demand and particularly those people with skills who are a bit more mobile, they can go to Australia and get 30 to 40 percent higher wages.

"They can also get, in many cases, cheaper housing costs so if you feel like you've got something special and that your boss is a little bit worried you might jump on a plane to Australia then yeah, go and ask," Hickey said.

"And if you can't get it [a 7 percent pay rise] from this boss, get it from the next one and get a sign-on bonus as well."

He said the tight labour market is giving employees huge bargaining power with other bonuses available such as the ability to work from home full time.  

Watch the full interview above.