By BRIAN FALLOW
Labour costs rose 2.2 per cent in the year to June, the fastest rate for six years.
Statistics New Zealand's annual survey of all labour costs covers not only salary and wages rates but holiday pay, superannuation, ACC and fringe benefits.
Salary and wage rates, which made up 83.7 per
cent of all wage costs, rose 2.3 per cent and accounted for 90 per cent of the past year's overall 2.2 per cent increase.
Most of the rest is explained by annual leave and statutory holiday costs, which made up 11.5 per cent of labour costs and which rose 2.4 per cent in the latest year.
Superannuation represents 1.4 per cent of labour costs. It rose 1.7 per cent, compared with 1.3 per cent the year before.
ACC employer premiums (1.6 per cent of all costs) were essentially flat, rising a statistically insignificant 0.2 per cent. Falls in the levy rates, which were down by around 3 per cent, offset higher wages and salaries and therefore the base the premium is levied on. ACC costs had fallen in each of the previous five years.
Other non-wage labour costs, such as vehicles, medical insurance and low-interest loans, fell 4.8 per cent. Employers provided fewer vehicles for private use.
Labour costs rose faster in the public sector. Central government's labour costs rose 2.7 per cent, local government's 2.2 per cent and the private sector's 2 per cent.
But the cost of business inputs other than labour have either fallen or risen more slowly.
The producers price index recorded a 2 per cent fall in the cost of other business inputs - other than labour and capital - in the year to June. Capital goods prices rose 0.7 per cent.
