Annual wage increase remains at historic high

The Labour Cost Index (LCI) recorded an increase of 3.4 percent in salary and wage rates (includingovertime) for the March 2008 year, Statistics New Zealand said today.

This matches the annual increase forthe December 2007 year, and is the highest annual increase recorded since the series began inthe December 1992 quarter.

The Quarterly Employment Survey (QES) results for the March 2008 year show the annual increase in totalgross earnings exceeded the annual increase in total paid hours.

This resulted in a 4.6 percent increase inaverage total hourly earnings, to $23.66.The LCI increase for the March 2008 quarter was 0.7 percent, down from the previous two increases of 1.1percent and 0.9 percent in the December 2007 and September 2007 quarters, respectively.

Salary and wage rates (including overtime) for personal and protective service workers increased 5.7percent for the March 2008 year, the largest annual increase recorded since the series began in theDecember 1992 quarter.

Personal and protective service workers' salary and wage rates (includingovertime) rose 1.1 percent in the March 2008 quarter.

The main reason for the increase this quarter was toreflect the cost of living, while matching market rates and changes in collective employment agreementsalso had an impact.

Continued growth in earnings was also evident in the QES, where total gross earnings increased 7.5percent for the March 2008 year. Employment, as measured by full-time equivalent employees (FTEs),increased 3.2 percent for the March 2008 year.

Geoff Bascand Government Statistician

There are two companion Hot Off The Press information releases published –Labour Cost Index (Salaryand Wage Rates): March 2008 quarter and Quarterly Employment Survey: March 2008 quarter.