Wages rise as economy turns
Labour costs are rising again as the economy recovers, although hours worked are still only creeping up slowly.
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Labour costs are rising again as the economy recovers, although hours worked are still only creeping up slowly.
Private sector wages rose 0.5% for the June quarter and 2.1% for the year, according to the labour costs index released this morning by Statistics New Zealand. This was broadly in line with the average forecast by economists.
But it was the average hourly earnings which saw the biggest jump, – these rose 1.2% for the quarter, and 3.1% for the year – well above the average forecast of 0.8% for the quarter, and 2.3% for the year, according to the quarterly employment survey, also released this morning.
When measured on a weekly basis, the rise is even more pronounced – average weekly earnings rose 4.3%, the largest increase in tow years. (this figure can often be higher because of commissions, bonuses, and other non-hourly related remuneration)
The increases in the labour market are coming in the pay rates rather than the number of people employed, the survey shows.
Pay rates are going up, but the number of full time equivalent employees rose 0.4% for the quarter and 0.7% for the year.
Rob Hosking
Tue, 02 Aug 2011
Tue, 02 Aug 2011
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Wages rise as economy turns
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