The increase in labour costs continues to slow in the September 2009 quarter, with salary and wage rates (including overtime) going up by 0.5 percent on the quarter and 2.1 percent on the year. The annual increase is the lowest recorded since the December 2002 quarter and it is the fourth consecutive quarter of easing increases in annual labour costs.

The major reason for the increases this quarter have been collective employment agreements, which suggests that the economic recession is having a major effect in bringing labour costs down. Without collective employment agreements it is likely that the increase in labour costs would have been significantly lower. Not surprisingly, the public sector is finding it harder to constrain labour casts as these collective agreements continue to flow through the sector.

On the year, Public sector increases were at 2.9 percent, while private sector saw a 2.0 percent increase. Public sector rates were up 1.1 percent on the quarter, while private sector rates increased by only 0.4 percent.

Looking at industries, the greatest increases on the quarter were in education and training (up 2.3 percent), local government administration (up 1.1 percent) and mining (up 0.9 percent). On the year the greatest increases have been in education (up 3.7 percent), health and community services (up 3.4 percent) and personal and other services (up 3.4 percent). The main reasons for the increases were collective employment agreements for the first two industries, and the increased cost of living for the third.

Looking at occupations, the greatest increases on the quarter were education professionals (up 2.7 percent), professionals (up 1.0 percent), mobile plant operators (up 0.8 percent) and health professionals (up 0.7 percent). On the year, annual increases ranged from 1.4 percent to 4.3 percent. The greatest increases in salary and wage rates have been for managers, professionals and technicians (up 2.3 percent), and clerks, service and sales workers (up 1.9 percent). Again, collective employment agreements were the main reason for the increases.