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Demand for labour pushes up wages

ANNUAL growth in wages and demand for labour is continuing, according to Statistics New Zealand. The tight labour market is reflected in the salary and wage rates (including overtime) increase of 2.2 per cent in the year to September 2004.

Overtime wage rates have gone up 3 per cent over the same period. In the September 2004 quarter, salary and wage rates (including overtime) increased 0.7 per cent.

Average weekly earnings for workers in full time employment his $770.75 in the September quarter.

Trades workers' salary and wage rates (including overtime) increased 1.1 per cent in the September 2004 quarter, the highest quarterly increase since the series began in the December 1992 quarter.

Annually, trades workers' salary and wage rates have increased 3.2 per cent.

Average total hourly earnings remained relatively unchanged at $20.31. Total gross earnings and total paid hours had similar rates of growth in the September 2004 quarter.

However, in the year to September 2004, there was strong growth in total gross earnings (up 7.1 per cent) and total paid hours (up 3.6 per cent), resulting in a 3.4 per cent annual increase in average total hourly earnings.

Demand for labour continued as filled jobs increased 4.7 per cent in the September 2004 year, driven by a 5.4 per cent increase in full-time employees. Annual growth in the number of full-time employees continues to be greater than growth in part-time employees, reflecting economic overall growth.

Average weekly hours worked for all employees in full-time jobs was just over 38 hours.