2 Aug 2011

Employers 'less keen' to take on workers

5:07 pm on 2 August 2011

A job recruitment specialist says uncertainty over the outlook for the world economy is disrupting some firms' hiring plans.

Statistics New Zealand says there is annual growth in pay rates of 1.9% in the year to June, unchanged from at the end of March.

Once productivity-related pay rises are included, annual pay growth was 3.1%, up from 2.6% at the end of March - but still short of cost of living increases of 5.3% for the same period.

Michael Dickson from recruiter Hudson says pay rises for the top 10% to 15% have been higher.

Mr Dickson says employers are less keen to take on more workers due to ongoing problems in the world economy.

Hiring could also be deferred ahead of the Rugby World Cup and the election on 26 November, leading to a slowdown in wage growth.

Wage growth slips

Growth in wage and salary rates went backwards in the June quarter. Statistics New Zealand says rates rose 0.4% in the three months to June, less than a rise of 0.5% in the first three months of the year.

Government employees had a 0.3% rise, less than the 0.5% increase in the March quarter.

Private sector employees did slightly better, receiving a 0.5% increase, up from a 0.4% rise in the previous quarter.