NZ wage inflation slows in 1Q, pressure off RBNZ 1 May 2012
- Greens elect James Shaw as new male co-leader Business
- MARKET CLOSE: NZ shares rise led by F&P Healthcare, Nuplex Business
- NZ dollar heads for 2.4% weekly drop Business
- RBNZ will target property investment lending Business
- NZ wool prices hold at elevated levels as volumes decline Business
- SeaDragon sinks into the red on rising factory cost Business
- Smartpay profit falls as Aussie customer quits on cab deal Business
- CPA Australia takes defamation action against rival NZ body Business
- Dorchester Property investors vote bid to dump manager Business
- NZ business confidence falls to lowest level since September 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.
28 May 2015 News
Defence Minister Gerry Brownlee leaves today for Singapore to join his counterparts at the 14th annual Shangri-La... more
28 May 2015 Business News
Article - BusinessDesk Reserve Bank unlikely to cut OCR next month, line-ball on cut this year, Westpac says By Anna Lu May 28... more
28 May 2015 Business News
Fonterra cuts this season's milk price by 10c, forecasts $5.25/kgMS for 2015 May 28 (BusinessDesk) - Fonterra Cooperative... more
23 May 2015 Lifestyle
The pride and glory of winning The Ultimate Waterman is relived for Kiwi Daniel Kereopa in a documentary that went live online this... more
22 May 2015 Property
Building and Housing Minister Dr Nick Smith today released at the Certified Builders’ Association conference in Christchurch... more
20 May 2015 Property
Goodman Property lifts FY earnings 5.4% on revenue growth, cost clamp down May 20 (BusinessDesk) - Goodman Property Trust,... more
30 Apr 2015 Migration
The Immigration Amendment Bill (No 2) which cracks down on employers who exploit migrant workers passed its final reading in... more
27 May 2015 Travel & Tourism
UPDATE: Bob Jones ejected from Air NZ flight as passengers applaud (Corrects flight number to 421, adds passenger... more
28 May 2015 Netball
Following a disciplinary hearing staged yesterday afternoon by the Trans Tasman Netball League (TTNL), operators of the ANZ... more
28 May 2015 Opinion
Face it, it has been a very, very bad week for anyone who thinks that a) FIFA is a damn fine organisation run by guys who... more
26 May 2015 People
Youth Minister Nikki Kaye today announced the recipients of the 2015 Youth Awards. Winners will be presented with awards at a... more
26 May 2015 Press Releases
NZ employees rate work-life balance as top priority, while job seekers eye cash, survey shows May 26 (BusinessDesk) - New... more
15 May 2015 State of the Market Report
NZ's growing ICT sector drives rapid economic diversification, Joyce says May 15 (BusinessDesk) - New Zealand's information... more