NZ wage inflation slows in 1Q, pressure off RBNZ 1 May 2012
- US retailers weighing on orange roughy prices, Sanford says Business
- MARKET CLOSE: NZ shares drop on profit taking, Fed jitters Business
- Bupa gains court approval to buy Dental Corp in Aust, NZ Business
- NZ dollar faces more downside Business
- Minister encourages participation in Samoan Language Week News
- NZ Sugar Company boosts profits on higher exports Business
- Linking Minds Scholarships – Making Language Accessible News
- Greymouth Petroleum shucks off disaffected shareholder Business
- Lance Wiggs's Punakaiki Fund mulls $50 million IPO Business
- Ecoya ekes out small annual profit, EBITDA up 26% Business
New Zealand wage inflation slowed in the first three months of the year, leaving overall labour costs benign enough to let the central bank keep interest rates on hold for longer.
The labour cost index rose 0.4 percent in the three months ended March 31, according to Statistics New Zealand. That’s just short of the 0.5 percent forecast in a Reuters survey of economists.
Private sector wage costs grew 0.5 percent, according to Statistics New Zealand. Private sector staff in the agriculture, fisheries and forestry sectors reported the fastest wage growth at 0.8 percent.
The tepid pace of wage inflation will let Reserve Bank Governor Alan Bollard continue to hold off raising the official cash rate as he contends with a strong currency damping imported inflation and volatile overseas markets raising the threat of volatility.
Last week, Bollard kept the benchmark interest rate at a record-low 2.5 percent, and issued another warning about the strength of the kiwi dollar.
Total private sector average hourly earnings jumped 1.3 percent to $24.90 with a 2.1 percent gain in overtime, according to the Quarterly Employment Survey, released at the same time. Reuters economists were picking a quarterly gain of just 0.5 percent.
Total public sector hour rates jumped 2.8 percent to $34.82, and the overall hourly rate rose 1.4 percent to $26.96.
Today’s figures come before Thursday’s household labour force survey, which is expected to show the unemployment rate stayed at 6.3 percent, and the participation rate crept up 0.1 percentage points to 68.3 percent.
The QES figures show total filled jobs dropped 1.2 percent to 1.69 million in the quarter, though were flat on a seasonally adjusted basis. Full-time equivalent positions fell 0.6 percent to 1.33 million in the quarter. FTEs were up 0.1 percent when seasonally adjusted.
The bulk of the quarterly decline came in education and training, which shed 22,100 FTEs, or 18 percent, to 104,300 in the period, though the quarter captures the school holidays. That quarterly decline was slightly larger than normal, leading to annual fall of 3.6 percent.
Electricity, gas, water and waste services added 5.5 percent, or 600, FTEs in the quarter to 11,600, while manufacturing FTEs grew 4.8 percent, or 8,000, to 175,200. Construction FTEs grew at a quarterly pace of 0.9 percent to 91,500.
Total weekly paid hours shrank an actual 0.6 percent to 51 million in the quarter, short of the 0.4 percent growth picked by economists. Paid hours fell 0.5 percent when seasonally adjusted. That’s the first quarterly decline since December 2010.
24 May 2013 News
New Zealand Government Hon Judith CollinsMinister for Ethnic Affairs 24 May 2013 Collins announces Language Line expansion Ethnic... more
24 May 2013 Business News
Article - BusinessDesk US retailers weighing on orange roughy prices with sustainability concerns, Sanford says May 24 ... more
24 May 2013 Entertainment
Base FM It marks the conclusion of NZ Music Month for 2013 and a new era for Base FM. The team were under much deliberation ... more
23 May 2013 Property
Article - BusinessDesk By Paul McBeth May 23 (BusinessDesk) - DNZ Property Fund, which reported a 14 percent decline in ... more
23 May 2013 Migration
New Zealand Government Hon Murray McCullyMinister of Foreign Affairs 23 May 2013 Media Statement Ambassador to... more
22 May 2013 Travel & Tourism
Queenstown is the world's 25th best destination, according to TripAdvisor. The global travel website released its latest survey... more
24 May 2013 Rugby
All Black lock Ali Williams has announced his retirement from international rugby. The 77-test veteran who made his debut in 2002 made... more
24 May 2013 Column
Gordon Campbell on failures of care for those with mental disabilities, and Murray McCully‘s latest gaffes by Gordon ... more
24 May 2013 People
New Zealand Defence Force A poster showing a soldier’s grave has won 11 year old Sam Sutcliffe, of Kerikeri, first prize... more
23 May 2013 Recruitment
New Zealand Government Hon Steven JoyceMinister for Economic Development Hon Simon BridgesMinister of Energy & Resources The... more