Fewer hours worked, earnings growth slows

Total paid hours, when seasonally adjusted, decreased by 3.4 per cent in the year to June 2009, and 1.2 per cent in the June 2009 quarter, according to the Quarterly Employment Survey (QES) released by Statistics NZ.

In the June 2009 year, employment as measured by the number of full-time equivalent employees (FTEs) decreased 3.2 per cent and filled jobs decreased 2.1 per cent.

The manufacturing industry was the main contributor to the annual decreases in employment and hours.

Seasonally adjusted gross earnings increased 1.0 per cent for the year to June 2009, and decreased 0.5 per cent in the June 2009 quarter. Despite a fall in paid hours, total gross earnings increased over the year, leading to a 4.5 per cent increase in the average total hourly earnings in the year to June 2009.

The labour cost index (LCI), showed that salary and wage rates (including overtime) were 2.8 per cent higher in the June 2009 quarter than in the June 2008 quarter, following a 3.3 per cent increase in the year to the March 2009 quarter. The latest annual increase is the lowest since a 2.7 percent increase in the year to the June 2005 quarter.

In the June 2009 quarter, salary and wage rates (including overtime) increased 0.3 per cent, the lowest since an identical increase in the June 1999 quarter.

Salary and wage rates (including overtime) for the private sector increased 2.7 per cent in the year to the June 2009 quarter, and 0.3 per cent in the June 2009 quarter. Public sector salary and wage rates (including overtime) rose 3.6 per cent in the year to the June 2009 quarter, and 0.4 per cent in the June 2009 quarter.