Annual wage growth for workers drops to 3.5 per cent
Australia’s annual pace of wage growth has stepped down to 3.5 per cent through to September, from 4.1 per cent over the year to June.
A large fall in the annual rate was anticipated as a bumper 5.75 per cent increase in award wages fell out of the calculation.
On a quarterly basis, the 0.8 per cent wage growth captured by the Australian Bureau of Statistics held at the same pace as in the quarter before and landed a touch below expectations.
While unchanged from the quarter before, the 0.8 per cent quarterly growth is down from the peak of 1.3 per cent recorded in the September quarter last year.
Australian Bureau of Statistics head of prices statistics Michelle Marquardt said wage rises for many jobs could be directly or indirectly linked to the outcome of the annual wage decision by the industrial umpire.
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“The latest decision of a 3.75 per cent wage increase paid from 1 July 2024 was lower than the September quarter 2023 increase of 5.75 per cent,” she said.
“It was also lower than the commission’s September quarter 2022 awarded increase of between 4.6 per cent and 5.2 per cent.”
Annual private sector wages grew by 3.5 per cent in the September quarter and public sector wages rose 3.7 per cent.
Pay packets have been expanding strongly as demand for workers remains high but slower growth is expected as the economy weakens and the labour market slackens.
Some economists are wary persistently strong wage growth without accompanying productivity gains can add to inflation pressures and complicate the Reserve Bank of Australia’s inflation fight.
