Fewer hours worked, earnings growth slows

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

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

The manufacturing industry was the main contributor to the annual decreases in employment and hours.Seasonally adjusted gross earnings increased 1.0 percent for the year to June 2009, and decreased 0.5percent in the June 2009 quarter.

Despite a fall in paid hours, total gross earnings increased over the year,leading to a 4.5 percent increase in the average total hourly earnings in the year to June 2009.

The labour cost index (LCI), also released today, showed that salary and wage rates (including overtime)were 2.8 percent higher in the June 2009 quarter than in the June 2008 quarter, following a 3.3 percentincrease in the year to the March 2009 quarter.

The latest annual increase is the lowest since a 2.7 percentincrease in the year to the June 2005 quarter.In the June 2009 quarter, salary and wage rates (including overtime) increased 0.3 percent, the lowestsince an identical increase in the June 1999 quarter.

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

Geoff Bascand Government Statistician