The growth in New Zealand wage and salary rates slowed in the year to the end of September, while the number of full-time jobs fell, indicating a weakening employment market.

The labor cost index (LCI) of salary and wage rates from Statistics New Zealand, released Tuesday, showed pay rates rose 1. 9 percent in the year ending September, including a 0.5-percent rise in the last quarter.

Salary and ordinary time wage rates in the private sector were up 2.1 percent in the year, while public sector rates rose 1.4 percent, down from 1.6 percent in the year to the June.

The mean increase in salary and wage rates in the September quarter was 3.1 percent, the lowest since a 3.1-percent increase in the March 2011 quarter.

Statistics New Zealand's Quarterly Employment Survey (QES), also out Tuesday, showed subdued demand for labor in the September quarter, with full-time employment down 0.3 percent, contributing to a 0.1-percent fall in the number of full-time equivalent employees.

Meanwhile, a 0.4-percent rise in part-time employment helped raise the number of filled jobs by 0.3 percent.

An Economic Update from the ASB Bank said the moderate rate of wage and unemployment growth was expected.

Wage growth had been very stable for the last couple of years, with the LCI increasing by about 2 percent year-on-year, and the employment indicators looked "fairly weak" compared with the relatively strong June quarter figures, said the update.

"With wage pressures muted and employment growth yet to pick up to any great degree, we continue to expect that the RBNZ (Reserve Bank of New Zealand) will keep the OCR (official cash rate) on hold until September 2013," said the update, referring to the historically low 2.5 percent OCR rate.

The opposition Labour Party said the government's "hands off" economic policy had led to 2,800 jobs lost in the last three months alone.

"Manufacturing jobs are down by 5,700 in a year, even when primary processing is included. Outside of manufacturing of primary products, the position is even worse," Labour finance spokesperson David Parker said in a statement.

The Council of Trade Unions (CTU) said that while the average pay rise was 3.1 percent, only 56 percent of workers received a pay rise over the last year.

CTU economist Bill Rosenberg called on the government to complete the minimum wage review.

"We hope they are not planning to slow increases for those who need them most. The minimum wage increase flows on to many people on low wages," Rosenberg said in a statement.