The labour market is still running hot, with wages and salaries growing at record rates in the September quarter, according to data out today from Statistics New Zealand.
The Labour Cost Index (LCI) showed salary and wage rates rose 0.8 per cent in the private sector in the September quarterand 2.8 per cent for the September year.
Economists polled by Dow Jones had expected a 0.6 per cent quarterly gain and a 2.6 per cent annual rise.
Stats NZ said the increases were the largest since the series began in the December 1992 quarter.
In the public sector, quarterly salary and wage rates rose 1.5 per cent in the quarter, and 3.6 per cent over the year.
Combined salary and wage rates were up 1.0 per cent in the September quarter and 3.1 per cent for the September year.
The Quarterly Employment Survey (QES), also released today, showed continued demand for labour, with the number of full-time equivalent employees (FTEs) up 4.0 per cent from the previous year to 1.3 million, and filled jobs up 3.5 per cent 1.7 million.
Part-time employment increased 3.7 per cent in the September quarter.
The QES showed average total hourly earnings rose 4.2 per cent to $21.17 in the year ended September.
On a quarterly basis, average total hourly earnings were up 0.9 per cent compared to the June quarter.
The QES reflects changes in pay rates and composition of the paid workforce, while the LCI measures changes in salary and wage rates for a fixed quality and quantity of work.
The tight labour market will add to the pressures facing the Reserve Bank (RB) which is battling inflationary worries. The RB last week raised the official cash rate (OCR) by 25 basis points to 7.00 per cent.
New Zealand's unemployment rate for the September quarter will be released tomorrow. It has been sitting at 3.7 per cent, just off 20-year lows.
