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Annual Wage Inflation Rises To 3.4 Percent

Wage inflation, measured by the labour cost index (LCI), was 3.4 percent in the year ended June 2022, while average ordinary time hourly earnings rose 6.4 percent, Stats NZ said today.

The LCI for all salary and wage rates (including overtime) increased 3.4 percent in the year ended June 2022, up from 3.0 percent in the year ended March 2022.

“The June quarter had the largest increase in LCI salary and wages rates since late-2008. Over the year, a steadily increasing number of wages have been raised to better match market rates, as well as attracting or retaining staff,” business employment insights manager Sue Chapman said.

“Nearly two-thirds of roles surveyed in the LCI saw an increase in ordinary-time wage rates in the year ended June 2022 – the highest level since this series began in 1993.”

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