Figure 2 shows the pay movements in different sectors between June 2001 and June 2006 using the Labour Cost Index from Statistics New Zealand. From June 2001 to June 2004 pay movements for the Public Service were comparable to the private sector. In the year to June 2005, pay movements in the Public Service were lower than the private sector with an increase of 1.5% in the Public Service compared to 2.5% in the private sector. Over the year to June 2006 Public Service pay increased by 3.5%, closing some of the gap that had developed from the previous year (private sector pay increased by 3.1% in the year to June 2006). Pay movement in the Education sector over the year to June 2006 was 5.4%, higher than other parts of the State sector.
Figure 2. Pay movement, 2001-2006
Source: Statistics NZ. Labour Cost Index - All Salary and Wage Rates