Growth slows in wages and salaries

Published: 11:29AM Tuesday November 03, 2009 Source: ONE News

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Salaries and ordinary wages increased by 2.1% in the year to September - the most sluggish annual rate in nearly seven years.

The increase is a step down from a 2.8% increase in the year to June 2009 and a 3.4% increase in the year to March, Statistics New Zealand's Labour Cost Index shows.

The last time wages increased by 2.1% was in the year to December 2002.

In the public sector, salary and wages (including overtime) rose 2.9% for the year to September - the lowest rate since December 2005. The rise was driven by a 2.3% increase in the local government sector and a 3% rise in the central government sector.

Salary and wages in the private sector rose 2% - the lowest rate since December 2002.

Over the year, the biggest rises in wages and salaries were seen in education (up 3.7%), health and community services (up 3.4%) and personal and other services (3.4%) industries.

Occupation-wise, managers, professionals and technicians recorded the biggest rise in wages and salaries, up 3%.

In its Quarterly Employment Survey, also released on Tuesday, Statistics New Zealand says the number of full-time equivalent employees, filled jobs, and the seasonally adjusted total paid all decreased.

Employment, measured by the number of full-time equivalent employees, declined 3.5% in the year to September and filled jobs decreased by 2.6%.

Statistics New Zealand says the manufacturing sector was the main downward contributor to both annual decreases.

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