Labour costs rise

Labour costs rose 2.2 per cent in the June quarter compared to a year ago, Statistics New Zealand (SNZ) said today.

This compared with a 2.3 per cent increase in salary and wage rates including overtime.

Non-wage labour costs rose 1.3 per cent, as a result of higher annual leave, statutory holiday costs, superannuation and medical insurance costs.

Annual leave and statutory holiday costs rose by 2.4 per cent for the year to June 2003. In the same period salary and wage rates including overtime rose 2.3 per cent.

Employer superannuation costs rose by 1.7 per cent but medical insurance and other non-wage labour costs including motor vehicles available for private use fell by 4.8 per cent from the June 2002 quarter to the June 2003 quarter.

SNZ said a drop in the average rate of fringe benefit tax had a downward effect on the June 2003 quarter index of other non-wage labour costs.

Workplace accident insurance costs showed a minimal increase of 0.2 per cent in the year ending June 2003 after falling 14.3 per cent in the same period the previous year due to a reduction in levies.

Meanwhile, other business input costs showed contrasting movements SNZ over the same period.

Producer input prices fell by 2.2 per cent from the June 2002 quarter to the June 2003 quarter. Capital goods prices rose by 0.7 per cent over the same period.

SNZ said these input costs were reflected in the prices businesses charged for their output, which fell by 0.6 per cent in the year to June 2003. Consumer prices rose by 1.5 per cent over the same period.

- NZPA