Wages rose 0.8 per cent for the March quarter, up 3.7 per cent annually, according to today’s ABS data.

This marks the highest annual wage growth since the September quarter in 2012, up from the 3.3 per cent growth seen in the December quarter.

Leigh Merrington, ABS acting head of prices statistics, says these figures reflect low unemployment, a tight labour market and high inflation.

Of course, these figures aren’t keeping up with current inflation rates of 7 per cent, meaning most workers have received a pay cut, in real terms.

The private sector was the main driver of growth, with wages increasing 0.8 per cent over the March quarter 2023 and annually by 3.8 per cent.

“A number of private sector industries have recorded annual wages growth above 4 per cent, with the remaining industries all above 3 per cent annual growth,” Merrington notes.

The public sector recorded the highest quarterly (0.9 per cent) and annual (3.0 per cent) wage growth for the sector in a decade, driven by an 1.5 per cent increase in the education and training sector, with increases for jobs in New South Wales and Queensland primary education.

Annual wage growth was lowest in the Public administration and safety industry (2.9 per cent) and highest in the Wholesale trade and Other services industries (4.4 per cent).

“Wage outcomes over the March quarter 2023 saw a continued lift in the share of jobs receiving wage rises of between 4 and 6 per cent, which is the highest share since 2009,” Merrington continues.

“The share of jobs with a wage rise of 2 per cent or less has fallen from over 50 per cent in mid-2021 to less than 20 per cent.”