NZ wage inflation slows in 1Q, pressure off RBNZ 1 May 2012
- MARKET CLOSE: NZ shares weaken ahead of Christmas holidays Business
- NZ dollar heads for 0.7 percent dip this week Business
- Carter Holt, Fletcher fixed prices for Auckland timber Business
- DoC to seek independent financial view on monorail economics Business
- Christchurch labour costs increase, driven by construction Recruitment
- Ross Asset liquidators look to claw back $3.8 mln paid out Business
- Independent advice sought on monorail financial viability News
- Contact mulls $225M bond issue to refinance 2014 maturities Business
- Mad Butcher owner buys stake in Burger King patty supplier Business
- Gallagher Group to quit Tru-Test stake for Aussie expansion 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.
20 Dec 2013 News
Prime Minister John Key has welcomed the news of a planned visit to New Zealand by the Duke and Duchess of Cambridge in April next... more
20 Dec 2013 Business News
Article - BusinessDesk ComCom could deliver $750M to consumers after High Court win, says Franks By Pattrick Smellie Dec. 20 ... more
19 Dec 2013 Business News
Article - BusinessDesk NZ records first November trade surplus since 1991 as China becomes biggest trading partner By Paul ... more
19 Dec 2013 Lifestyle
The New Zealand Society invites you to attend our annual Waitangi Day Charity Ball. Hosted in The Ballroom at The Dorchester in Park... more
16 Dec 2013 Property
Queenstown, New Zealand, has emerged as one of the world’s fastest growing ski resort property markets ahead of well-known... more
16 Dec 2013 Property
New Zealand Government Nick Smith 16 December, 2013 Auckland Special Housing Areas to add 9,500 new homes Housing Minister Dr Nick... more
19 Dec 2013 Migration
Immigration Minister Michael Woodhouse has welcomed new figures showing New Zealand overstayer numbers are continuing to... more
17 Dec 2013 Travel & Tourism
New Zeland Prime Minister and Tourism Minister John Key today announced the appointment of Jacqui Spice, Norm Thompson, and Chris... more
19 Dec 2013 Golf
ANZ today announced it will be the first company in New Zealand to sponsor Kiwi golf prodigy and sporting sensation Lydia Ko, as she... more
14 Dec 2013 Column
Part Two: Focusing on what’s important In part one of the guide to enjoying the silly season I gave some tips on ways to take... more
13 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the Rebstock investigation of the MFAT leaks by Gordon Campbell Having spent... more
13 Dec 2013 People
Her social media followings outnumber New Zealand's population by two million, and she hasn't even finished high school. Jamie Curry... more
13 Dec 2013 People
Rotorua District Council News Release Friday 13 December 2013 Primary schools’ environmental champions lauded at... more
20 Dec 2013 Recruitment
Article - BusinessDesk Dec 20 (BusinessDesk) – The cost of labour in Christchurch is increasing, especially in the... more