NZ wage inflation slows in 1Q, pressure off RBNZ 1 May 2012
- NZ consumers grow more upbeat, may resume spending Business
- Sick leave expected to increase during World Cup Sport
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine 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.
1 Mar 2017 News
28 Feb 2017 Customs Minister Nicky Wagner is today congratulating Customs on a record number of drug seizures in 2016. “Customs... more
1 Mar 2017 Business News
28 Feb 2017 State Services Minister Paula Bennett has welcomed an agreement with unions which will see the Government’s new pay... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more
6 Feb 2017 NZ Tourism
8 Feb 2017 Does New Zealand celebrate halloween? Is Auckland a dangerous town- these are some of the subjects visitors Google... more
1 Mar 2017 Netball
VALE: Tania Dalton 1971-2017 March 1, 2017 The Netball community is deeply saddened to hear of the passing of Silver Fern... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more
1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more
1 Mar 2017 Recruitment
28 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith and Associate Education Minister Louise Upston have... more