KEY POINTS:
Workers' earnings are increasing, according to Statistics New Zealand data released today that is regarded as an important indicator of inflationary pressure.
Salary and wage rates (including overtime), as measured by the Labour Cost Index (LCI), increased 3.2 per cent in the year to the December 2006 quarter, Statistics New Zealand said today.
This was more than the 2.9 per cent expected in a Reuters survey.
And seasonally adjusted total gross earnings increased 9 per cent in the same period, the largest annual increase ever recorded in the Quarterly Employment Survey (QES), SNZ said.
In the LCI, salary and wage rates (including overtime) for finance and insurance workers increased 5.9 per cent in the year to December quarter, and 3 per cent in the December quarter.
"These are the largest annual and quarterly increases since the series began in the June 2001 quarter," SNZ said.
"Matching market rates and the settlement of collective employment agreements were the main reasons given for the quarterly increase," SNZ said.
The QES showed a 4.9 per cent increase in average total hourly earnings to $22.40.
Employment, as measured by full time equivalent employees, increased 2.8 per cent in the year to December 2006 quarter. This was driven by a 3.5 per cent increase in full time employment.
SNZ said the QES average earnings statistics reflect not only changes in pay rates but also compositional changes in the paid workforce, while the LCI measures changes in the salary and wage rates for a fixed quantity and quality of labour input.
- NZPA
