UPDATE 1-NZ wages growth slows, labour market soft

* NZ wage growth lowest in eight years

* NZ labour market weak with fewer jobs

* Data suggests Q3 jobless rate to rise modestly (Adds detail, analyst and market reaction)

WELLINGTON, Nov 3 - New Zealand wages grew at their slowest pace in eight years in the third quarter and the jobs market remained weak, backing views interest rates will remain low into next year.

The labour cost index of private wages rose 0.4 percent on the previous quarter, according to official data on Tuesday. A Reuters poll forecast a quarterly rise of 0.3 percent.

A separate employment survey for the quarter showed the number of filled jobs, or the number of jobs in the economy, falling and a slight increase in hours worked, pointing to a weak labour market.

"Wage pressures continue to ease in line with a loosening in the labour market. There's certainly nothing in there to cause the Reserve Bank too much concern," said ANZ-National senior economist Khoon Goh.

The New Zealand dollar <NZD=D4> was flat around $0.7175/85 and the yield on the December bank bill <NBBZ9> was unmoved after the data at 2.85 percent compared with the official cash rate of 2.5 percent.

Last week, the central bank held the benchmark cash rate at a record low 2.5 percent and said it expected to keep it there until the second half of 2010, brushing aside market hopes of an earlier hike. [ID:nSYD80874]

A string of recent data -- retail sales, house sales and prices, consumer and business confidence -- has pointed to a rebound in the economy, which emerged from recession in the three months to June 30 after five straight quarters of contraction.

Statistics New Zealand said the annual rate of private sector wage growth was 1.9 percent, the lowest since June 2001, in line with markets expectations.

Seasonally adjusted filled jobs fell 0.77 percent following a 0.8 percent rise in the previous quarter. [ID:nWEL003885]

Total paid hours rose 0.2 percent over the previous quarter, but fell 3.0 percent from a year earlier due to falls in manufacturing industries, which had been hit hard by the recession.

Official third-quarter unemployment data is due on Nov. 5, with the unemployment rate seen rising to 6.4 percent from 6.0 percent in the June quarter and employment shrinking 0.3 percent, according to a Reuters poll [NZ/POLL].