Wages grow 4.1% in year to June
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The news: Wages increased 4.1% over the year to the June quarter, amid signs of slowing.
The numbers: Private sector wages increased 0.7% over the June quarter, which was down from 0.9% in the three months to March.
At the same time, public sector wages were up 0.9%, a bigger rise than the 0.6% in the March quarter, but this was explained by the Australian Bureau of Statistics as being largely due to synchronised timing of Commonwealth public sector agreement increases.
On an annual basis, private sector wages were up 4.1%, on the back of three consecutive quarter at 4.2%. It remains higher than the same time last year.
The context: The March quarter this year marked the first time since September 2020 that wage growth on an annual basis fell for private sector workers. This data may suggest that wage growth has turned a corner.
Wage pressures are a point of interest for both employers and the Reserve Bank, though central bank officials have repeatedly said wage growth is not a major driver of inflation right now. Their concern largely relates to whether or not wage increases are sustainable, which relies on productivity growth.
NAB's Business Survey released on Tuesday shows labour costs grew 2.5% in July, up from 1.5% in June, likely reflecting increases in award and minimum wages that kicked in this financial year.
What they said: “The June quarter 2024 private sector rise was the lowest rise for a June quarter since 2021 and the equal lowest rise for any quarter since December quarter 2021," said ABS head of prices statistics Michelle Marquardt.
The source: Australian Bureau of Statistics media release
