Labour Cost Index (All Labour Costs): June 2011 quarter

Transcription

1 Labour Cost Index (All Labour Costs): June 2011 quarter Embargoed until 10:45am 21 October 2011 Key facts From the June 2010 quarter to the June 2011 quarter: Surveyed labour costs increased 2.4 percent. Non-wage labour costs increased 4.9 percent. Annual leave and statutory holiday costs increased 2.1 percent. Superannuation costs increased 11.3 percent. Workplace accident insurance costs increased 27.5 percent. Other non-wage labour costs (vehicles, medical insurance, and low-interest loans) increased 0.9 percent. Geoff Bascand 21 October 2011 Government Statistician ISSN

2 Commentary Labour costs increase 2.4 percent Non-wage labour costs increase 4.9 percent o Annual leave costs increase 2.1 percent o Rise in employer superannuation costs o Increase in workplace accident insurance costs o Small increase in other non-wage labour costs o Private sector labour costs increase 2.5 percent Related measures Labour costs increase 2.4 percent Labour costs increased 2.4 percent from the June 2010 quarter to the June 2011 quarter. The non-wage labour costs component of the labour cost index (LCI), for example annual leave or medical insurance costs, increased 4.9 percent. The salary and wage rates (including overtime) component, released in August 2011, increased 1.9 percent. Non-wage labour costs increase 4.9 percent Non-wage labour costs increased 4.9 percent from the June 2010 quarter to the June 2011 quarter. The increase was due to rises in employers' costs of annual leave and statutory holidays, superannuation, workplace accident insurance, and medical insurance. These rises were partly offset by falls in the costs of providing motor vehicles for private use and low-interest loans. 2

3 Annual leave costs increase 2.1 percent From the June 2010 quarter to the June 2011 quarter, the cost of annual leave and statutory holidays to employers increased 2.1 percent. Over the same period, salary and wage rates (including overtime) increased 1.9 percent. There were nine paid statutory holidays in 2011, the same number as in Waitangi Day fell on a weekend in 2011, and therefore was not a paid holiday for most employees. While ANZAC Day was on a weekday in 2011, it coincided with Easter Monday so both days were recognised as one statutory holiday. Annual leave and statutory holiday costs increased 2.0 percent for private sector employers and increased 2.6 percent for the public sector. The public sector increase was influenced by rises in annual leave entitlements for some occupations in the central government sector. Rise in employer superannuation costs Employer superannuation costs per employee increased 11.3 percent from the June 2010 quarter to the June 2011 quarter. The previous increases were 7.3 percent in the year to the June 2010 quarter, and 30.8 percent in the year to the June 2009 quarter. The 2011 increase was largely due to continued growth in the number of employees participating in KiwiSaver employer-subsidised schemes. Increases in contribution rates for some definedbenefit superannuation schemes also affected costs. With this year's Labour Cost Survey, an additional effort was made to ensure full reporting of KiwiSaver membership by respondents. Full reporting accounted for part of the 11.3 percent increase. The latest increase in superannuation costs was also influenced by a 1.9 percent increase in salary and ordinary time wage rates. An increase in wage rates means employers pay more in superannuation contributions that are based on a percentage of wages. 3

4 Public sector superannuation costs increased by 11.7 percent while private sector costs increased 11.2 percent from the June 2010 quarter to the June 2011 quarter. Increase in workplace accident insurance costs Employers' workplace accident insurance costs increased 27.5 percent from the June 2010 quarter to the June 2011 quarter. This follows a 5.0 percent decrease in the year to the June 2010 quarter. The 2011 increase in the Accident Compensation Corporation (ACC) employer premiums index reflects increases in ACC levy rates and a 1.9 percent increase in pay rates. For more information about the reasons for ACC levy increases, please refer to the October 2009 news release ACC releases levy increase proposals on the ACC website. 4

5 Small increase in other non-wage labour costs Other non-wage labour costs rose 0.9 percent from the June 2010 quarter to the June 2011 quarter. This compares with a 1.5 percent fall from the June 2010 quarter to the June 2011 quarter. The 'other non-wage labour costs' component of the LCI comprises medical insurance, motor vehicles available for private use, and employment-related low-interest loans. The cost of providing medical insurance cover increased from the June 2010 quarter to the June 2011 quarter, reflecting higher premiums. The cost of providing motor vehicles for private use and employer-related low-interest loans decreased between the June quarters. The prescribed interest rate that is used to calculate the fringe benefit value of low-interest loans fell from 6.24 percent to 5.90 percent, which had a downward influence on the costs. Fringe benefit tax (FBT) rates derived from data for the year to March 2011 were used to calculate the June 2011 quarter indexes for medical insurance, motor vehicles available for private use, and low-interest loans. FBT rates fell on 1 October 2010, at the same time as personal income tax rates decreased. The fall in FBT rates had a downward impact on other non-wage labour costs in For more information about FBT rate changes, see the Data quality section. 5

6 Private sector labour costs increase 2.5 percent Labour costs in the private sector increased 2.5 percent from the June 2010 quarter to the June 2011 quarter. In the public sector, the increase was 2.0 percent. Within the public sector, central government sector labour costs increased 1.9 percent, and local government costs 2.5 percent. Increases for individual industry groups' labour costs ranged from 0.3 percent (for printing) to 3.7 percent (for metal product manufacturing) in the year to the June 2011 quarter. 6

7 Related measures The costs of other business inputs (excluding capital costs), as measured by the producers price index, increased 4.8 percent from the June 2010 quarter to the June 2011 quarter, while capital goods prices increased 0.4 percent. Over the same period, the prices charged by businesses for their outputs increased 4.5 percent. GST rose from 12.5 percent to 15 percent on 1 October The consumers price index (CPI) increased 5.3 percent in the year to the June 2011 quarter. If June 2011 quarter prices had been processed with a GST rate of 12.5 percent, the CPI would have risen 3.3 percent over the year. At the same time as the GST rate rose, personal income tax rates decreased. However, since the salary and wage rates component of the LCI measures changes in gross salary and wage rates, it is not directly affected by changes in income tax rates. The non-wage labour costs component has been affected by a related fall in fringe benefit tax rates. For more detailed data see the Excel tables in the Downloads box. 7

8 Definitions About the labour cost index The labour cost index (LCI) measures changes in salary and wage rates for a fixed quantity and quality of labour input. Service increments, merit promotions, and increases (or decreases) relating to performance of the individual employee are not shown in the index. The salary and wage rates component of the LCI measures movements in base salary and ordinary time wage rates, and overtime wage rates. The non-wage component measures changes in the following costs to employers: annual leave and statutory holidays superannuation Accident Compensation Corporation (ACC) employer premiums medical insurance motor vehicles available for private use low-interest loans. More definitions Index reference period: the benchmark to which prices in other periods are compared (eg if the index number in a later period is 1150, prices have increased by 15.0 percent since the index reference period). Prices for later periods can also be compared in the same fashion. The LCI has an index reference period of the June 2009 quarter (=1000). Price index: measures the change in price between time periods for a given set of goods and services. It summarises a set of prices for a variety of goods and services collected from a number of outlets. 8

9 Related links Upcoming releases The Labour Cost Index (Salary and Wage Rates): September 2011 quarter will be released on 1 November The Release calendar lists all our upcoming information releases by date of release. Past releases See Labour Cost Index (All Labour Costs) information releases and Labour Cost Index (Salary and Wage Rates) information releases for links to past releases. Related information The Quarterly Employment Survey provides statistics on employment in New Zealand, including the levels of, and changes in, total earnings, hours paid for, filled jobs, average hourly and weekly earnings, and average weekly paid hours. The New Zealand Income Survey provides information on wages and salaries, self-employment, government transfers, and other transfer income. The Linked Employer-Employee Data provides statistics on filled jobs, job flows, worker flows, mean and median earnings for continuing jobs and new hires, and total earnings. 9

10 Data quality The data quality section provides period-specific and general information about the data. Period-specific information This section contains information about data that has changed since the last release. Reference period Data influencers General information This section has information about data that does not change between releases. Data source Coverage Sample size Index calculation formula and reference period Index number rounding Weights Quality control Contract indexation Workplace accident insurance costs Fringe benefit tax changes Timing of published data Period-specific information Reference period Information on superannuation costs and annual leave entitlements was collected in mid-may Information on ACC employer premiums was also collected in the June 2011 quarter. Questionnaires relating to medical insurance costs, motor vehicles available for private use, and low-interest loans were posted out one week after 30 June 2011, as the information collected relates to the June 2011 quarter as a whole. Data influencers Labour costs are influenced by changes in statutory holidays, taxes, and legislation. In 2011, events that affected the LCI are outlined below. In 2011, ANZAC Day (25 April) fell on Easter Monday and both public holidays were recognised on the same day. This kept the number of statutory holidays at nine, the same as in ANZAC Day in 2010 fell on a weekend and had a downward impact on the cost of statutory holidays to employers. As there is no change in the number of statutory holidays from 2010 to 2011, the cost of annual leave and statutory holidays to employers has risen broadly in line with salary and wage rates. For the 2011 LCI survey, an additional effort was made to ensure full reporting of KiwiSaver membership by respondents. Full reporting accounted for part of the 11.3 percent increase in superannuation costs for the year to the June 2011 quarter. 10

11 Fringe benefit tax (FBT) rates decreased on 1 October 2010, at the same time that personal income tax rates decreased. This had a downward impact on employer costs for providing other non-wage labour costs (ie medical insurance, motor vehicles for private use, and low-interest loans), which are all subject to FBT. GST rose from 12.5 percent to 15 percent on 1 October For motor vehicles available for private use and medical insurance, the taxable values of fringe benefits collected in the LCI survey include GST. However, GST is removed when calculating the costs for the LCI, so the rise in GST had no direct impact on the 2011 movement of other non-wage labour costs. General information Data source Salary and ordinary time and overtime wage rates for a fixed set of job descriptions are obtained by a quarterly postal survey of employers. Each quarter, salary and wage rates are surveyed for the pay period in which the 15th of the middle month of the quarter falls. Information on superannuation costs and annual leave entitlements is collected in mid-may of each year. Information on ACC employer premiums is also collected in the June quarter. Questionnaires relating to medical insurance costs, motor vehicles available for private use, and low interest loans are posted out about two weeks after the end of each June quarter, as the information collected relates to the June quarter as a whole. Coverage The index covers jobs filled by paid employees in all occupations and in all industries except private households employing staff. Coverage was extended to include jobs filled by paid employees under 15 years of age when the index was reweighted and re-expressed on an index reference of the June 2001 quarter (=1000). Sample size Approximately 2,100 respondents provide information on some or all of: annual leave entitlements ACC employer premiums superannuation costs medical insurance costs motor vehicles available for private use low-interest loans. Index calculation formula and reference period The LCI is calculated using the price-relatives form of the base-weighted Laspeyres formula, and is expressed on a price reference period of the June 2009 quarter (=1000). The index s price reference period is periodically updated to reflect changes in the sector of ownership of organisations. 11

12 Index number rounding Index number rounding (using standard Statistics New Zealand rounding procedures) can occasionally result in percentage movements for a particular cost being slightly higher or lower than would be expected, given movements recorded for component costs. Weights Each job description used in calculating the LCI was assigned a weight that reflected the relative importance of the job description within its sector of ownership, industry, and occupation group. Weights were calculated using 2006 Census of Population and Dwellings information on the relative importance of occupations within each sector by industry group, Business Frame (BF) information on the relative importance of industry groups within each sector, non-wage information surveyed in the June 2009 quarter (used to derive costs per employee per week), and administrative information (ie fringe benefit tax data, ACC levy rates, and workplace safety management discount information). Price reference period expenditure weights by sector of ownership and cost appear in table 6 of this release. Quality control The salary and wage rates component of the LCI is a quality-controlled measure. Only changes in salary and wage rates for the same quality and quantity of work are reflected in the index. Therefore, bonus and other irregular payments are excluded, as are increases due to service increments and merit promotions. One-off payments in lieu of pay rises are also excluded, as they do not result in changes to pay rates, as such. Contract indexation Parties that engage in commercial contracts use a range of price indexes produced by Statistics NZ in their indexation clauses (also known as contract escalation clauses). An indexation clause provides both parties to a contract with an agreed procedure for adjusting an originally contracted price, to reflect changes in costs or prices during the life of the contract. Contract indexation: A Guide for Businesses provides information on the price indexes produced by Statistics NZ and issues relating to their use in indexation clauses. The guide also outlines some points to consider when preparing an indexation clause, and includes an example of the mechanics of a simple indexation formula. Workplace accident insurance costs The movement in the ACC employer premiums index from the June 1999 quarter to the June 2000 quarter reflected the year-long deregulation of the provision of workplace accident insurance. In the lead-up to deregulation on 1 July 1999, employer premium rates were split into two parts: an ongoing 'residual claims levy' to fund historical injuries, and a 'base premium', relating to the 15-month period that ended on 30 June The residual claims levies and base premiums were added together at the disaggregated industry (ie five-digit ACC 'classification unit') level for use in calculating the index for the June 1999 quarter. 12

13 For the June 2000 quarter index, residual claims levies applicable to earnings for the year to March 2000 and payable by 31 May 2000 were, at the five-digit industry level, added to average premium rates (adjusted for risk sharing) for workplace accident insurance contracts in force at 31 March The average premium rates for workplace accident insurance contracts were derived from information obtained from the Department of Labour's Accident Insurance Regulator. For a small number of workplace accident insurance contracts taken out by big employers, downward adjustments to risk sharing amounts were made following consultation. From 1 July 2000, the provision of workplace accident insurance was renationalised, with ACC again becoming the sole provider. Under the renationalised scheme, employers continue to pay residual claims levies, and they also pay base ACC WorkPlace Cover premiums to cover the costs of ongoing injuries. Optional programmes are now offered by ACC: the ACC Workplace Safety Management Practices Programme and the ACC Partnership Programme. Under the latter programme's two options, the Partnership Discount Plan and the Full Self Cover Plan, employers are able to share various levels of risk in return for reductions in base premium rates. Under both the ACC Workplace Safety Management Practices Programme and the ACC Partnership Programme, employers passing safety audits at one of three levels (primary, secondary and tertiary) are eligible for safety management practices discounts of 10, 15, or 20 percent off standard WorkPlace Cover premium rates. For the June 2001 quarter index, residual claims levy rates (applicable to earnings for the year to March 2001) were, at the disaggregated industry level, added to ACC base premium rates (applicable to earnings for the nine months to March 2001), which were discounted to reflect actual eligibility (at the disaggregated industry level) for safety management discounts for the period to 31 March For employers in the ACC Partnership Programme sharing various levels of risk in return for reductions in base premium rates, standard WorkPlace Cover premium rates, less safety management discounts, were used in the index to represent changes in costs. For the years 2002 to 2011, the following statement can be applied: "For the June quarter index, residual claims levy rates (applicable to earnings for the year to March and collected in arrears) were, at the disaggregated industry level, added to ACC WorkPlace Cover levy rates (applicable to earnings for the year to March and collected during the period), which were discounted to reflect actual eligibility (at the disaggregated industry level) for safety management discounts for the period to 31 March. For employers in the ACC Partnership Programme sharing various levels of risk in return for reductions in base premium rates, standard WorkPlace Cover levy rates, less safety management discounts, were used in the index to represent changes in costs." On 1 April 2011, an experience rating programme was implemented on the ACC Work Account. Experience rating is a programme that adjusts ACC employer premiums, based on the industry of the employer and the employer's performance or experience. Invoices with the experiencerated levy started in July 2011, with the 'experience period' measured from 1 April 2007 to 31 March Employers' workplace accident insurance costs with the experience rating modification will be first captured in the non-wage labour costs index for the year to the June 2012 quarter. Based on data as at February 2011, ACC estimated that only 1.2 percent of employers will be eligible for the programme. 13

14 Fringe benefit tax changes The non-wage component of the LCI includes three costs that are subject to fringe benefit tax (FBT). These are: medical insurance motor vehicles available for private use low-interest loans. The three costs had a combined base weight of 1.19 percent of the overall index at the June 2009 quarter. For each of these costs, the taxable value of the benefit and the number of employees are collected in the survey. The taxable value plus FBT and excluding GST is averaged over all employees, or specific occupations, to give the average cost per employee per week of providing the benefit. In the past, FBT was calculated as 49 percent of the taxable value. When the top personal tax rate was increased from 33 percent to 39 percent, the FBT rate was increased from 49 percent to 64 percent for fringe benefits provided on or after 1 April This was enacted in December An FBT rate of 64 percent was used to calculate the June 2000 quarter LCI indexes of medical insurance, motor vehicles available for private use, and low-interest loans. This was the rate employers were required to pay, and were liable for, under legislation in force at the time. This had an upward impact of about 11 percentage points on the movement in other non-wage costs from the June 2000 quarter to the June 2001 quarter. Under legislation enacted in late September 2000, employers were given the choice of either: 1. continuing to use the flat 64 percent FBT rate 2. opting to use new multi-rate FBT rules. The multi-rate FBT regime allows fringe benefits attributed to individual employees to be subject to FBT rates based on the remuneration levels of employees receiving the benefits, thereby reducing the effect of the increase in the FBT rate to 64 percent. For employers who elected to undertake the multi-rate end-of-year (ie March quarter) 'square-up' for the year to March 2001, benefits attributed to individual employees during the year were subject to FBT rates based on employees' remuneration levels. Employers providing about twothirds of fringe benefits by value chose the multi-rate option for the year to March Collectively, these employers significantly reduced their FBT liability. FBT rates derived at the industry group level from FBT data for the year to March 2001, and taxable values for the June 2001 quarter, were used to calculate the June 2001 quarter indexes for medical insurance, motor vehicles available for private use, and low-interest loans. For the years 2002 to 2011, FBT rates derived at the industry group level from FBT data for the year to March, and taxable values for the June quarter, were used to calculate the June quarter indexes for medical insurance, motor vehicles available for private use, and low interest loans. Changes in personal tax rates from 1 October 2010 led to lower FBT rates from that date. This had a downward impact on the June 2011 quarter indexes for medical insurance, motor vehicles for private use, and low-interest loans. 14

15 Timing of published data The salary and wage rates indexes are released quarterly. From 2000 onwards, the indexes of non-wage labour costs and all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. Liability While all care and diligence has been used in processing, analysing, and extracting data and information in this publication, Statistics NZ gives no warranty it is error-free and will not be liable for any loss or damage suffered by the use directly, or indirectly, of the information in this publication. Timing Timed statistical releases are delivered using postal and electronic services provided by third parties. Delivery of these releases may be delayed by circumstances outside the control of Statistics NZ. Statistics NZ accepts no responsibility for any such delays. Crown copyright This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. You are free to copy, distribute, and adapt the work, as long as you attribute the work to Statistics NZ and abide by the other licence terms. Please note you may not use any departmental or governmental emblem, logo, or coat of arms in any way that infringes any provision of the Flags, Emblems, and Names Protection Act Use the wording 'Statistics New Zealand' in your attribution, not the Statistics NZ logo. 15

16 Contacts For media enquiries contact: Chris Pike Wellington For technical information contact: Ludeth Mariposa or Dion Gamperle Wellington For general enquiries contact our Information Centre: Phone: (toll free in New Zealand) (outside of New Zealand) info@stats.govt.nz 16

17 Tables The following tables are included with this release. They are available in Excel format from the Downloads box of Labour Cost Index (All Labour Costs): June 2011 quarter on the Statistics NZ website. If you do not have access to Excel, you may use the Excel file viewer to view, print, and export the contents of the file. 1. Labour costs by sector, all industries/occupations combined 2. Non-wage labour costs by sector, all industries/occupations combined 3. All labour costs for public sector, by industry 4.1 All labour costs for private sector, by industry 4.2 All labour costs for private sector, by industry, percentage change from same quarter of previous year 5.1 All labour costs for all sectors combined, by industry 6. Labour cost index, base expenditure weights by sector and cost Access more data on Infoshare Use Infoshare, a free, online database to access time-series data specific to your needs. To access the release time series on Infoshare, select the following categories from the homepage: Subject category: Work income and spending Group: Labour Cost Index - LCI 17

18 Labour Cost Index (All Labour Costs): June 2011 quarter Table 1 Labour Costs by Sector All industries/occupations combined Base: June 2009 quarter (=1000) Local government sector Public sector Central government sector Series ref: LCIQ SG11Z9 SG21Z9 SG31Z9 SG41Z9 SG51Z9 Quarter 2010 Jun Sep Dec Mar Jun Quarter 2010 Jun Sep Dec Mar Jun Quarter 2010 Jun Sep Dec Mar Jun Series ref: LCIQ SG12Z9 SG22Z9 SG32Z9 SG42Z9 SG52Z9 Quarter 2010 Jun Sep Dec Mar Jun Quarter 2010 Jun Sep Dec Mar Jun Quarter 2010 Jun Sep Dec Mar Jun Total Index of salary and ordinary time wage rates Percentage change from previous quarter (1) Percentage change from same quarter of previous year (1) Index of overtime wage rates (2) Percentage change from previous quarter (1) Private sector Percentage change from same quarter of previous year (1) All sectors combined For footnotes, see end of table. Published by Statistics New Zealand

19 Labour Cost Index (All Labour Costs): June 2011 quarter Table 1 continued Labour Costs by Sector All industries/occupations combined Base: June 2009 quarter (=1000) Local government sector Public sector Central government sector Series ref: LCIQ SG13Z9 SG23Z9 SG33Z9 SG43Z9 SG53Z9 Quarter 2010 Jun Sep Dec Mar Jun Percentage change from previous quarter (1) Quarter 2010 Jun Sep Dec Mar Jun Percentage change from same quarter of previous year (1) Quarter 2010 Jun Sep Dec Mar Jun Series ref: LCIQ SG18Z9 SG28Z9 SG38Z9 SG48Z9 SG58Z9 Index of all non-wage labour costs (4)(5) Private sector June quarter Percentage change from June quarter of previous year (1) All sectors combined June quarter Total Index of all salary and wage rates (3) For footnotes, see end of table. Published by Statistics New Zealand

20 Labour Cost Index (All Labour Costs): June 2011 quarter Table 1 continued Labour Costs by Sector All industries/occupations combined Base: June 2009 quarter (=1000) Local government sector Public sector Central government sector Private sector All sectors combined Series ref: LCIQ SG19Z9 SG29Z9 SG39Z9 SG49Z9 SG59Z9 June quarter June quarter Total Index of all labour costs (5)(6) Percentage change from June quarter of previous year (1) (1) Percentage changes are calculated from index numbers that are unrounded before the June 2009 quarter. (2) Indexes measure changes in rates paid for actual hours worked as overtime in the base period (ie June 2009 quarter). Some of these pay rates have fallen to ordinary time levels in subsequent quarters. (3) Indexes provide an overall measure of changes in ordinary time and overtime pay rates (ie salary and ordinary time wage rates, and overtime wage rates). (4) Indexes measure changes in all surveyed non-wage costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (5) From 2000 onwards, indexes of non-wage labour costs and all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (6) Indexes measure changes in all surveyed labour costs (ie salary and wage rates, and all non-wage labour costs). Published by Statistics New Zealand

21 Labour Cost Index (All Labour Costs): June 2011 quarter Table 2 Non-wage Labour Costs by Sector (1) All industries/occupations combined Base: June 2009 quarter (=1000) Annual leave ACC employer All non-wage and statutory Superannuation Other non-wage premiums holidays labour costs (2) labour costs (3) Series ref: LCIQ SG34Z9 SG35Z9 SG36Z9 SG37Z9 SG38Z9 Index for public sector June quarter Percentage change from June quarter of previous year (4) June quarter Series ref: LCIQ SG44Z9 SG45Z9 SG46Z9 SG47Z9 SG48Z9 June quarter June quarter For footnotes, see end of table. Index for private sector Percentage change from June quarter of previous year (4) Published by Statistics New Zealand

22 Labour Cost Index (All Labour Costs): June 2011 quarter Table 2 continued Non-wage Labour Costs by Sector (1) All industries/occupations combined Base: June 2009 quarter (=1000) Annual leave ACC employer All non-wage and statutory Superannuation Other non-wage premiums labour costs (3) holidays labour costs (2) Series ref: LCIQ SG54Z9 SG55Z9 SG56Z9 SG57Z9 SG58Z9 Index for all sectors combined June quarter Percentage change from June quarter of previous year (4) June quarter (1) From 2000 onwards, indexes of non-wage labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (2) Indexes measure changes in other surveyed non-wage labour costs (ie medical insurance, motor vehicles available for private use, and low interest loans). (3) Indexes measure changes in all surveyed non-wage costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (4) Percentage changes are calculated from index numbers that are unrounded before the June 2009 quarter. Published by Statistics New Zealand

23 Labour Cost Index (All Labour Costs): June 2011 quarter Table 3 All Labour Costs for Public Sector (1)(2) By industry Base: June 2009 quarter (=1000) Industry group (3) Series ref: LCIQ Index for June quarter DD Electricity, gas, water, and waste services SG39D OO1 Local government and administration SG39O OO2 Central govt admin, defence, and public safety SG39O OO Public administration and safety SG39O PP Education and training SG39P QQ Health care and social assistance SG39Q All industries combined (4) SG39Z Percentage change from June quarter of previous year (5) DD Electricity, gas, water, and waste services SG39D OO1 Local government and administration SG39O OO2 Central govt admin, defence, and public safety SG39O OO Public administration and safety SG39O PP Education and training SG39P QQ Health care and social assistance SG39Q All industries combined (4) SG39Z (1) Indexes provide an overall measure of changes in salary and ordinary time wage rates overtime wage rates and all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (2) From 2000 onwards indexes of all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (3) New Zealand Standard Industrial Output Categories (NZSIOC), based on the Australian and New Zealand Standard Industrial Classification (ANZSIC06). (4) Includes other industries not published separately. (5) Percentage changes are calculated from index numbers that are unrounded prior to the June 2009 quarter. Symbol:.. not available (due to the introduction of the new industrial classification) Published by Statistics New Zealand

24 Labour Cost Index (All Labour Costs): June 2011 quarter Table 4.1 All Labour Costs for Private Sector (1)(2) By industry Base June 2009 quarter (=1000) Industry group (3) Series ref: LCIQ Index for June quarter AA1 Agriculture SG49A AA3 Fishing, aqua & agri, forest, and fish support services SG49A AA Agriculture, forestry, and fishing (4) SG49A BB Mining SG49B CC1 Food, beverage, and tobacco product mfg SG49C CC2 Textile, leather, clothing, and footwear mfg SG49C CC3 Wood and paper products manufacturing SG49C CC4 Printing SG49C CC5 Petroleum, chemical, polymer, and rubber prod mfg SG49C CC6 Non-metallic mineral product manufacturing SG49C CC7 Metal product manufacturing SG49C CC8 Transport equipment, machinery, and equipment mfg SG49C CC9 Furniture and other manufacturing SG49C CC Manufacturing SG49C DD Electricity, gas, water, and waste services SG49D EE Construction SG49E FF Wholesale trade SG49F GH1 Retail trade SG49G GH2 Accommodation and food services SG49G GH Retail trade and accommodation SG49G II Transport, postal, and warehousing SG49I JJ Information media and telecommunications SG49J KK Financial and insurance services SG49K LL Rental, hiring, and real estate services SG49L MN1 Professional, scientific, and technical services SG49M MN2 Administrative and support services SG49M MN Prof, science, tech, admin, and support services SG49M PP Education and training SG49P QQ Health care and social assistance SG49Q RS1 Arts and recreation services SG49R RS2 Other services SG49R RS Arts, recreation, and other services SG49R All industries combined (4) SG49Z (1) Indexes provide an overall measure of changes in salary and ordinary time wage rates, overtime wage rates, and all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (2) From 2000 onwards indexes of all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (3) New Zealand Standard Industrial Output Categories (NZSIOC), based on the Australian and New Zealand Standard Industrial Classification (ANZSIC06). (4) Includes industry AA2 forestry and logging. Symbol:.. not available (due to the introduction of the new industrial classification) Published by Statistics New Zealand

25 Labour Cost Index (All Labour Costs): June 2011 quarter Table 4.2 All Labour Costs for Private Sector (1)(2) By industry Percentage change from same quarter of previous year (3) Industry group (4) Series ref: LCIQ Percentage change from June quarter of previous year AA1 Agriculture SG49A AA3 Fishing, aqua & agri, forest, and fish support services SG49A AA Agriculture, forestry, and fishing (5) SG49A BB Mining SG49B CC1 Food, beverage, and tobacco product mfg SG49C CC2 Textile, leather, clothing, and footwear mfg SG49C CC3 Wood and paper products manufacturing SG49C CC4 Printing SG49C CC5 Petroleum, chemical, polymer, and rubber prod mfg SG49C CC6 Non-metallic mineral product manufacturing SG49C CC7 Metal product manufacturing SG49C CC8 Transport equipment, machinery, and equipment mfg SG49C CC9 Furniture and other manufacturing SG49C CC Manufacturing SG49C DD Electricity, gas, water, and waste services SG49D EE Construction SG49E FF Wholesale trade SG49F GH1 Retail trade SG49G GH2 Accommodation and food services SG49G GH Retail trade and accommodation SG49G II Transport, postal, and warehousing SG49I JJ Information media and telecommunications SG49J KK Financial and insurance services SG49K LL Rental, hiring, and real estate services SG49L MN1 Professional, scientific, and technical services SG49M MN2 Administrative and support services SG49M MN Prof, science, tech, admin, and support services SG49M PP Education and training SG49P QQ Health care and social assistance SG49Q RS1 Arts and recreation services SG49R RS2 Other services SG49R RS Arts, recreation, and other services SG49R All industries combined (5) SG49Z (1) Indexes provide an overall measure of changes in salary and ordinary time wage rates, overtime wage rates, and all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (2) From 2000 onwards indexes of all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (3) Percentage changes are calculated from index numbers that are unrounded before the June 2009 quarter. (4) New Zealand Standard Industrial Output Categories (NZSIOC), based on the Australian and New Zealand Standard Industrial Classification (ANZSIC06). (5) Includes industry AA2 forestry and logging. Symbol:.. not available (due to the introduction of the new industrial classification) Published by Statistics New Zealand

26 Labour Cost Index (All Labour Costs): June 2011 quarter Table 5.1 All Labour Costs for All Sectors Combined (1)(2) By industry Base: June 2009 quarter (=1000) Industry group (3) Series ref: LCIQ Index for June quarter AA1 Agriculture SG59A AA3 Fishing, aqua & agri, forest, and fish support services SG59A AA Agriculture, forestry, and fishing (4) SG59A BB Mining SG59B CC1 Food, beverage, and tobacco product mfg SG59C CC2 Textile, leather, clothing, and footwear mfg SG59C CC3 Wood and paper products manufacturing SG59C CC4 Printing SG59C CC5 Petroleum, chemical, polymer, and rubber prod mfg SG59C CC6 Non-metallic mineral product manufacturing SG59C CC7 Metal product manufacturing SG59C CC8 Transport equipment, machinery, and equipment mfg SG59C CC9 Furniture and other manufacturing SG59C CC Manufacturing SG59C DD Electricity, gas, water, and waste services SG59D EE Construction SG59E FF Wholesale trade SG59F GH1 Retail trade SG59G GH2 Accommodation and food services SG59G GH Retail trade and accommodation SG59G II Transport, postal, and warehousing SG59I JJ Information media and telecommunications SG59J KK Financial and insurance services SG59K LL Rental, hiring, and real estate services SG59L MN1 Professional, scientific, and technical services SG59M MN2 Administrative and support services SG59M MN Prof, science, tech, admin, and support services SG59M OO1 Local government administration SG59O OO2 Central govt admin, defence, and public safety SG59O OO Public administration and safety SG59O PP Education and training SG59P QQ Health care and social assistance SG59Q RS1 Arts and recreation services SG59R RS2 Other services SG59R RS Arts, recreation, and other services SG59R All industries combined (4) SG59Z (1) Indexes provide an overall measure of changes in salary and ordinary time wage rates, overtime wage rates, and all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (2) From 2000 onwards indexes of all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (3) New Zealand Standard Industrial Output Categories (NZSIOC), based on the Australian and New Zealand Standard Industrial Classification (ANZSIC06). (4) Includes industry AA2 forestry and logging. Symbol:.. not available (due to the introduction of the new industrial classification) Published by Statistics New Zealand

27 Labour Cost Index (All Labour Costs): June 2011 quarter Table 5.2 All Labour Costs for All Sectors Combined (1)(2) By industry Percentage change from same quarter of previous year (3) Series Industry group (4) Index for June quarter ref: LCIQ AA1 Agriculture SG59A AA3 Fishing, aqua & agri, forest, and fish support services SG59A AA Agriculture, forestry, and fishing (5) SG59A BB Mining SG59B CC1 Food, beverage, and tobacco product mfg SG59C CC2 Textile, leather, clothing and footwear mfg SG59C CC3 Wood and paper products manufacturing SG59C CC4 Printing SG59C CC5 Petroleum, chemical, polymer, and rubber prod mfg SG59C CC6 Non-metallic mineral product manufacturing SG59C CC7 Metal product manufacturing SG59C CC8 Transport equipment, machinery, and equipment mfg SG59C CC9 Furniture and other manufacturing SG59C CC Manufacturing SG59C DD Electricity, gas, water, and waste services SG59D EE Construction SG59E FF Wholesale trade SG59F GH1 Retail trade SG59G GH2 Accommodation and food services SG59G GH Retail trade and accommodation SG59G II Transport, postal, and warehousing SG59I JJ Information media and telecommunications SG59J KK Financial and insurance services SG59K LL Rental, hiring, and real estate services SG59L MN1 Professional, scientific, and technical services SG59M MN2 Administrative and support services SG59M MN Prof, science, tech, admin, and support services SG59M OO1 Local government administration SG59O OO2 Central govt admin, defence, and public safety SG59O OO Public administration and safety SG59O PP Education and training SG59P QQ Health care and social assistance SG59Q RS1 Arts and recreation services SG59R RS2 Other services SG59R RS Arts, recreation, and other services SG59R All industries combined (5) SG59Z (1) Indexes provide an overall measure of changes in salary and ordinary time wage rates, overtime wage rates, and all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans). (2) From 2000 onwards indexes of all labour costs are available for only the June quarter of each year. Up until the June 1999 quarter, these indexes were released quarterly. (3) Percentage changes are calculated from index numbers that are unrounded before the June 2009 quarter. (4) New Zealand Standard Industrial Output Categories (NZSIOC), based on the Australian and New Zealand Standard Industrial Classification (ANZSIC06). (5) Includes industry AA2 forestry and logging. Symbol:.. not available (due to the introduction of the new industrial classification) Published by Statistics New Zealand

28 Labour Cost Index (All Labour Costs): June 2011 quarter Table 6 Labour Cost Index Base expenditure weights by sector and cost Base expenditure weight Sector and cost ANZSIC96 (1) June 2001 quarter June 2008 quarter ANZSIC06 (2) June 2009 quarter Private sector Salary and ordinary time wage rates Overtime wage rates All salary and wage rates (3) Annual leave and statutory holidays Superannuation ACC employer premiums Other non-wage labour costs (4) All non-wage labour costs (5) All labour costs (6) Public sector Salary and ordinary time wage rates Overtime wage rates All salary and wage rates (3) Annual leave and statutory holidays Superannuation ACC employer premiums Other non-wage labour costs (4) All non-wage labour costs (5) All labour costs (6) All sectors combined Salary and ordinary time wage rates Overtime wage rates All salary and wage rates (3) Annual leave and statutory holidays Superannuation ACC employer premiums Other non-wage labour costs (4) All non-wage labour costs (5) All labour costs (6) (1) Based on the Australian and New Zealand Standard Industrial Classification 1996 (ANZSIC96). (2) Based on the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06). (3) Comprises salary and ordinary time wage rates, and overtime wage rates. (4) Other surveyed non-wage labour costs comprise medical insurance, motor vehicles available for private use, and low interest loans. (5) All surveyed non-wage labour costs comprises annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use, and low interest loans. (6) All surveyed labour costs comprises all salary and wage rates, and all non-wage labour costs. Published by Statistics New Zealand