KEY POINTS:
Business demand for labour continues at high levels and wage growth remains strong, figures released today by Statistics New Zealand (SNZ) show.
The Labour Cost Index (LCI) recorded an increase of 3.4 per cent in salary and wage rates, including overtime, in the year to the December quarter - the highest annual increase since the series began in the December 1992 quarter.
For just the latest December quarter salary and wage rates, including overtime, rose 1.1 per cent, which is the largest quarterly increase since the series started.
The Quarterly Employment Survey (QES) for the year to December shows a 4.1 per cent increase in average total hourly earnings to $23.32.
While the LCI measures changes in salary and wage rates for a fixed quantity and quality of labour input, the QES reflects not only changes in pay rates but also compositional and other changes across and within the paid workforce.
According to the LCI, private sector salary and wage rates, including overtime, rose 3.4 per cent in the year to the December quarter and 1.1 per cent in the quarter alone - both records.
Public sector salary and wage rates, including overtime, were up 3.1 per cent for the year and 0.9 per cent in the latest quarter.
The QES put the increase in full time equivalent employees (FTEs) at 1.4 million, up 3.3 per cent for the year to December and 2.9 per cent for the December quarter. The annual increase was driven by a 3.5 per cent rise in full time employment and a 2.2 per cent increase in part time employment, SNZ said.
Seasonally adjusted total gross earnings, as measured in the QES, increased 2.7 per cent in the December quarter and 7 per cent in the December year.
The annual increase was up from a 6.1 per cent rise in the September year and was indicative of continued strength in earnings growth, SNZ said.
The main drivers for the increase were the construction, wholesale trade, and manufacturing industries.
Private sector average total hourly earnings increased 0.9 per cent for the December quarter, while in the public sector the increase was 1.9 per cent.
Average ordinary time hourly earnings for females increased 1.3 per cent to $21.59, with that for males up 0.8 per cent to $24.68.
The LCI showed finance and insurance industry salary and wage rates, including overtime, were up 6.3 per cent in the year and 3.6 per cent in the quarter. Both figures were the largest since the series began in June 2001.
- NZPA
