Upward wage trend continues

By Phil Boeyen, ShareChat Business News Editor

Monday 5th November 2001

Wages are continuing to rise according to latest labour cost and employment survey data.

Statistics New Zealand says figures from its Labour Cost Index (LCI) show salary and wage rates rose 0.6% in the three months ended September following increases of 0.4% in the previous three month period and 0.5% in the March quarter.

On an annual basis, salary and wage rates, including overtime, were 2% higher in the September quarter than in the same period last year.

Public sector rates led the rise at 0.6% for the third quarter while private sector rates were just behind, rising 0.5%.

Almost half of private sector respondents reported that ordinary time pay rates had increased in the past year, the highest proportion in more than three years. The average annual increase was 4.2%.

The Quarterly Employment Survey for the three months ended August backs up the LCI and shows that seasonally adjusted total paid hours increased by 2.7% compared to last year and seasonally adjusted gross earnings rose by 6.2%.

Average total hourly earnings for the quarter rose 1.1% to $18.48 and brings the annual movement in average total hourly earnings to 3.4 % in the year to August 2001.

"An annual movement of this magnitude has not been seen since August 1997, when it was 3.7%," says Statistics NZ.

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