Q1 06 Stats
First Quarter stats show wage rise of
0.7%
New Zealand labour costs rose mostly in line with expectations in
the first quarter, reflecting a still-tight labour market and
suggesting the Reserve Bank will keep interest rates on hold for
most of the year.
The labour cost index of private wages rose 0.7% on the previous
quarter, in line with market expectations in a Reuters poll.
The index was up 3% on a year ago. The annual rise was the biggest
since the Statistics New Zealand series began in the December
quarter 1992.
The quarterly employment survey's private sector ordinary-time
earnings were slightly lower than economists' forecasts.
Total jobs filled fell 0.7% while seasonally adjusted paid hours
rose 0.8%.
The experimental unadjusted labour cost index series shows a
quarterly rise of 1.1% in private sector wages and a 5.5% gain from
a year ago.
"It looks like wage increases have probably peaked, which is what
you'd expect," says Darren Gibbs, Deutsche Bank chief
economist.
Most interesting, he says, is that paid hours and filled jobs were
less than expected.
"Looking ahead, there may be some upward risk to this week's
employment growth forecasts. Likewise for first-quarter gross
domestic product, the labour input measures suggest GDP is positive
not negative."
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