3 Aug 2010

Wage growth indicates job market picking up

9:56 pm on 3 August 2010

Statistics New Zealand figures show the job market is slowly improving.

Fulltime equivalent positions rose during the three months to June and annual wage growth halted 18 months of decline.

However, the number of fulltime jobs rose more slowly than part-time jobs, compared with the previous quarter.

Recruitment firm Hays says the increase in fulltime jobs has picked up since May.

The annual growth in wages, excluding overtime, edged up from 1.5% to 1.6% during the June quarter.

This followed 18 months of steady decline from a peak of 4% in September 2008. However, the Council of Trade Unions noted that the improvement still leaves wage growth below the rate of inflation.

Figures due to be released on Thursday will show if enough jobs are being created to prevent the unemployment rate rising again.

Unemployment fell from 7.1% of the workforce to 6% in the March quarter.