Annual wage rates grow 1.8 percent – Media release
Labour cost index (LCI) salary and wage rates, which include overtime, increased 1.8 percent in the year to the December
2012 quarter, Statistics New Zealand said today. This includes a 0.5 percent rise in the December 2012 quarter.
Salary and ordinary time wage rates in the private sector increased 1.9 percent in the year to the December 2012
quarter. Public sector salary and ordinary time wage rates rose 1.5 percent, up from 1.4 percent in the year to the
September 2012 quarter. The latest annual wage rate growth in the public sector resulted from increases in the central
government sector (up 1.4 percent) and local government (up 1.9 percent).
The mean increase for all surveyed salary and wage rates that rose in the December 2012 quarter was 3.0 percent,
compared with 3.1 percent in the September 2012 quarter. The latest mean increase is the lowest since a 3.0 percent
increase in the September 2000 quarter. Of all pay rates surveyed, 55 percent showed annual increases in the year to the
December 2012 quarter.
Results from the Quarterly Employment Survey (QES), also released today, showed that average hourly earnings for
ordinary time (ie excluding overtime) rose 2.6 percent in the year to the December 2012 quarter. This followed a rise of
2.8 percent in the year to the September 2012 quarter.
The QES results also showed that demand for labour and paid hours rose for the December 2012 quarter after adjusting for
seasonal fluctuations. The number of filled jobs rose 0.4 percent from the previous quarter. Full-time jobs rose by 0.7
percent while part-time jobs fell 0.6 percent. The overall result of these movements was a 0.4 percent rise in full-time
equivalent jobs (FTEs). Seasonally adjusted total paid hours rose 0.6 percent over the same period.
The LCI tracks nearly 6,000 jobs and reflects changes in the rates that employers pay to have the same job done to the
same standard. Rises to match the market, retain staff, or reflect the cost of living are shown in the LCI, while rises
reflecting individual performance or years of service are filtered out.
The QES surveys approximately 18,000 business locations and reflects New Zealand employers' demand for paid labour. From
the survey responses, we estimate the levels and changes in employment, gross earnings, and paid hours in the industries
we survey. These estimates are then used to calculate average earnings and paid hours statistics.
ENDS
For more information about these statistics:
• Visit Labour Cost Index (Salary and Wage Rates): December 2012 quarter and Quarterly Employment Survey: December 2012 quarter
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• Open the attached files
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