Labour growth strong, wages mildly so

By NZPA

Monday 5th August 2002

New Zealand's wage rates continued their modest but steady growth trend during the June quarter, as did employment, Statistics New Zealand said today.

Salary and wage rates, including overtime, increased by 0.5 percent in the three months to June, following similar increases in the previous two quarters.

According to the Labour Cost Index (LCI), salary and wage rates increased on an annual basis by 2.1 percent on the June 2001 quarter.

The results were a little lower than analysts expected -- polls showed the LCI was tipped to rise by 0.6 percent for the quarter and 2.3 percent for the year.

In the private sector, wages and salaries rose by 0.5 percent for the quarter and are now 2.1 percent higher than a year earlier.

Fifty-three percent of private sector ordinary time pay rates increased from the June 2001 quarter, the highest level since June 1996. The average annual increase was 4.2 percent.

Public sector pay has a marginally lower increase. It was up by 0.4 percent in the June quarter, after a 0.6 percent increase in March. Annually, public sector pay was 2.3 percent higher than in the June 2001 quarter.

Meanwhile, employment as measured by the Quarterly Employment Survey (QES) proved strong for the quarter, although statisticians said it was consistent over the year. Employment figures for the May quarter showed a strong 2.1 percent rise in filled jobs during the period, which the department said was mostly due to an increase in part-time jobs.

Annually filled jobs rose by 4.4 percent on the same quarter a year ago.

Full-time equivalent employees (FTEs) rose by 1.7 percent in the May quarter, compared to a 0.3 percent increase in February, and a 1.1 percent rise a year before.

Industries showing the greatest job growth include construction (up 6.6 percent) and education (up 9.4 percent).

FTEs were up on an annual basis by 4.3 percent.

Despite a rise in employment, average total hourly earnings across all sectors decreased by a flat 0.3 percent during the May quarter, although they rose by 2.4 percent for the year.

Private sector earnings dropped by 0.1 percent during the quarter and increased by 1.4 percent for the year. Public sector employees sustained an even greater drop in hourly earnings, by 1.3 percent in the May quarter, but an increase of 5 percent over the year.

The average total hourly earnings in the private sector were $17.60 in the May quarter, while their public sector counterparts earned $23.19.

The QES is not the official gauge of employment figures -- that is the Household Labour Force survey which is due out on Thursday.

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