Labour costs rose 0.7 per cent in the December quarter -- slightly higher than economists' forecasts -- according to Statistics New Zealand figures today.
The Labour Cost Index survey showed private sectors costs rose 0.7 per cent, public costs rose 0.8 per cent and all sectors by 0.7 per cent.
That meant the annual 2.5 per cent rise in labour costs was the highest in nearly eight years. Government statistician Brian Pink said the rise reflected the tight labour market.
Unemployment figures due on Friday are expected to show New Zealand has one of the lowest rates in the developed world at just over 3 per cent.
When overtime is included, salary and wage rates rose 0.7 per cent in the private sector during the quarter and 0.8 per cent overall.
Professionals' salary and wage rates increased 1.9 per cent in the quarter, reflecting the settlement of collective employment agreements. Annually, teaching professionals' salary and wage rates increased 3.0 per cent.
SNZ also released its Quarterly Employment Survey which showed jobs filled increased 2.4 per cent. The lift to 1.7 million jobs is up 4.6 per cent on a year earlier.
The seasonally adjusted total number of hours paid rose 2.1 per cent in the quarter and 4.8 per cent for the year.
Seasonally adjusted gross earnings, reflecting both higher wages and the new jobs created, rose 1.8 per cent in the quarter and 7.0 per cent for the year.
However, average ordinary time hourly earnings in the private sector fell 0.7 per cent in the quarter to $18.85 against a 1.0 per cent rise in the public sector to $25.30.
SNZ said a large rise in the number of employees in the retail sector and hospitality industry explained the fall in average hourly earnings.
Private sector overtime fell 2.3 per cent to $21.92, leaving total hourly earnings at $18.95 -- down 0.6 per cent.
Public sector overtime rates also fell, down 0.3 per cent in the quarter to $27.51 and down 3.6 per cent over the year.
- NZPA
