Wage and employment levels rise

Wages and employment levels continued to rise over the year to March, figures released by Statistics New Zealand today show.

The Labour Cost Index (LCI) recorded a rise of 0.5 per cent in salary and wage rates, including overtime, in the March quarter, against the December quarter, Statistics NZ said.

The LCI was up 2.5 per cent on the previous March quarter.

Overtime wage rates rose 0.3 per cent in the March quarter compared to the previous quarter and were 3.0 per cent higher than the previous March quarter.

In the LCI, furniture and other manufacturing salary and wage rates recorded the largest industry movement during the March quarter, up 1.1 per cent.

This was the largest quarterly rise for the industry since the index began in the June 2001 quarter.

Health professionals' salary and wage rates, including overtime, rose 0.9 per cent in the quarter, and 3.6 per cent compared to the previous March quarter.

Private sector salary and wage rates including overtime, increased 0.5 per cent in the March quarter, following on from a 0.7 per cent increase in the December quarter.

This was driven by a 0.6 per cent increase in salary and ordinary wage rates and a 0.2 per cent rise in overtime wage rates.

When compared to the previous March quarter, private sector salary and wage rates rose 2.5 per cent, with overtime wage rates up 2.9 per cent and salary and ordinary wage rates up 2.5 per cent.

Public sector salary and wage rates including overtime rose 0.4 per cent compared to the previous quarter and 2.6 per cent compared to the previous March quarter.

The Quarterly Employment Survey (QES), also released today, showed continued annual growth in earnings.

Seasonally adjusted total gross earnings were up 2.0 per cent compared to the December quarter, and 7.2 per cent on the March 2004 quarter.

Average total hourly earnings rose 3.6 per cent to $19.11 in the March year, and 1.5 per cent in the March quarter to $20.56.

Average weekly earnings increased 1.6 per cent in the March quarter to an estimated $794.83 for full time employees.

Using full-time and part-time employees as the denominator, average weekly earnings were estimated at $674.66.

The QES showed that in the March year full-time employment rose 4.1 per cent, driven by increases in construction, retail trade and wholesale trade.

Part-time employment rose 3.4 per cent in the March year, driven by an increase in part-time employment in property and business services.

But, the number of full-time employees and filled jobs remained relatively unchanged in the March quarter compared to the December quarter.

Full time employment increased 1.3 per cent in the March quarter compared with the previous quarter.

Part-time employment fell 4.5 per cent for the quarter, driven by a seasonal decrease in part-time employment in education.

Total paid hours, seasonally adjusted remained unchanged compared to the December quarter, at 38.42 hours a week, but was 3.4 per cent higher than the March 2004 quarter.

- NZPA