Labour costs on the rise
In contrast with much of the last decade, the larger increases are in private sector as opposed to government sector wages.
Labour costs and earnings are on the rise.
In the first of a batch of employment data this week, the quarterly labour costs index shows a rise of 2% for the year and 0.5% for the September quarter.
In contrast with much of the last decade, the larger increases are in private sector as opposed to government sector wages.
The quarterly labour costs index measures changes in pay rates and is one of a group of indicators of cost pressures for businesses.
Today's figures are precisely in line with the consensus market forecast.
Public sector labour costs rose 1.8% for the year to September, whereas private sector costs rose 2%.
That 1.8% rise in public sector labour costs though is higher than the government's budget target, which is for an average annual rise of 1.5% in personnel costs.
The accompanying quarterly employment index shows annual average ordinary time hourly earnings up 3.2%, the largest annual increase since a 4% rise in September 2009.
The index measures demand for labour as well as average earnings.
Average total weekly earnings - which includes overtime and other income rose 4.1% for the year, moving above $1000 for the first time. The biggest contributor of this was increases in manufacturing, where earnings rose 5.4% for the year.
The next batch of labour market data this week is on Thursday, when the household labour force survey will provide the latest unemployment data.
Rob Hosking
Tue, 01 Nov 2011
Tue, 01 Nov 2011
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Labour costs on the rise
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