Steady annual wage growth continues

The Labour Cost Index (LCI) recorded an increase of 3.1 percent in salary and wage rates (including over time) in the year to the September 2007 quarter, Statistics New Zealand said today.

The QuarterlyEmployment Survey (QES) results for the same period show the annual increase in total gross earnings exceeded the annual increase in total paid hours.

This resulted in a 3.9 percent annual increase in averagetotal hourly earnings, to $23.10.In the LCI, the 3.1 percent increase in salary and wage rates (including overtime) is the ninth consecutive annual increase recorded above 3 percent.

Salary and wage rates (including overtime) for the private sectorrose 3.2 percent in the year to the September 2007 quarter, while in the public sector they increased 3.0percent.

Steady growth in earnings was also evident in the QES, where seasonally adjusted total gross earningsincreased 6.1 percent for the September 2007 year.

Employment, as measured by full-time equivalent employees (FTEs), remained relatively unchanged for the September 2007 quarter but increased 2.5percent for the September 2007 year.