The period August to November 1999 saw strong growth in paid hours and filled jobs. In general, the growth occurred in
industries with lower average earnings, latest figures from Statistics New Zealand show.
In the November 1999 quarter, total paid hours increased by 3.2 per cent. This was partly related to an increase in job
numbers over the same period, but also because people were working more hours. The quarterly increase in total paid
hours occurred predominately in industries that have lower average earnings. Those industries included: accommodation,
restaurants and cafes; manufacturing; and construction.
The largest increase in total paid hours came in the accommodation, cafes and restaurants industry which has the lowest
level of average total hourly earnings of any industry in the survey. The increase in paid hours resulted from strong
job growth above a level that is likely to be due to seasonal influences. This is consistent with recently published
results in the Retail Trade Survey and the Accommodation Survey for November 1999, which have reported strong growth in
this industry.
In the November 1999 quarter there was an increase in filled jobs of 18,400 or 1.3 per cent. The main contributors to
this quarterly increase were the accommodation, cafes and restaurants; manufacturing and wholesale trade industries.
An effect of this pattern of increase in paid hours and filled jobs was to cause average total hourly earnings to
decrease to $17.50 in November 1999, down from $17.58 in August 1999. This represents a quarterly decrease of 8 cents or
0.5 per cent.
The quarterly decrease in average total hourly earnings was, therefore, driven mainly by compositional changes rather
than decreases in wage rates. Compositional effects occur when a change in the composition of the paid workforce affects
the level of average earnings (or hours), regardless of whether or not there has been a change in wages. Wage rate
statistics that exclude compositional effects are measured by the Labour Cost Index. This index provides a measure of
wage inflation. The latest Labour Cost Index statistics for the December quarter are due to be released on Wednesday 23
February.
Private sector average ordinary time hourly earnings decreased by 0.8 per cent between August and November 1999 and are
now $16.46. In the year to November 1999, private sector average ordinary time hourly earnings have increased 1.4 per
cent. This is the lowest annual increase in private sector average ordinary time hourly earnings since the year to
February 1994 (when there was an increase of 1.3 per cent).
Len Cook
Government Statistician
ends