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Highest Annual Wages Growth Since 2014

Australia has seen its highest annual rates of wages growth since September 2014, as the wage price index rose 0.7 per cent in the June quarter.

This marks the third consecutive quarter of growth, according to data released today by the Australian Bureau of Statistics (ABS). The annual rate of growth was 2.6 per cent, the highest in close to eight years.

Michelle Marquardt, head of Prices Statistics at the ABS, said the consistent wage growth was “driven mostly by wage rises across the private sector”, with the sector outpacing public sector wages, which grew 2.4 per cent year-on-year, and 0.6 per cent during the quarter.

“Expanding demand for skilled jobs over the last 12 months has continued to build wage pressure across a broader range of industries and jobs, reflected in the increasing size of pay rises.”

The average size of private sector hourly wage rises increased to 3.8 per cent, up from 2.7 per cent this time last year. This is the highest rate of average wage movement for the sector since June 2012.

Western Australia recorded the highest rate of quarterly wage growth at 0.8 per cent, while Queensland and Tasmania recorded the highest rate of annual growth 2.9 per cent.

Northern Territory recorded both the lowest rate of quarterly (0.3 per cent) and annual wage growth (2.0 per cent) for the second consecutive quarter.

In regards to industries, construction recorded the highest quarterly (1.4 per cent) and annual rise (3.4 per cent) in wages. Accommodation and food services recorded the lowest quarterly rate of growth, up just 0.1 per cent, while mining and electricity, gas, water and waste services recorded the lowest through the year wage growth, at 2.2 per cent.

 



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