Wage growth hits 'four for four' for first time in 15 years, Treasurer says
Wages in Australia went up 0.8% in the June quarter and rose 4.1% for the year, according to the latest data from the Australian Bureau of Statistics (ABS).
The Wage Price Index showed private sector wages grew 0.7% in the June quarter, lower than the 0.9% increase in the previous quarter.
"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 Michelle Marquardt, ABS head of prices statistics, in a statement.
Source: Wage Price Index, Australia, June 2024
Public sector wages, on the other hand, increased 0.9%, up from 0.6% in the March quarter.
"The stronger June quarterly rise for the public sector was largely due to the newly synchronised timing pattern of Commonwealth public sector agreement increases," Marquardt said.
Annual wage growth
Meanwhile, Australia's annual wages increased 4.1% for the year, according to the ABS.
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Source: Wage Price Index, Australia, June 2024
"Today's result means that for the first time in 15 years, wages growth has hit 'four for four,' with annual nominal wages growing by at least four per cent for four consecutive quarters," Treasurer Jim Chalmers said in a statement.
Annual wage growth in the private sector was 4.1%, while the public sector saw a 3.9% increase.
"This reflects changes to new state and federal wage policies introduced across 2023," the ABS said.
Annual wages also increase
Annual real wages, on the other hand, grew 0.3% through the year to the June quarter 2024, according to Chalmers.
"Under Labor, annual real wages have been growing for three consecutive quarters. At the time of the election, annual real wage growth was going backwards by 3.4%," he said.
Sustained increase in real wages is further expected this financial year as data from the Australian HR Institute revealed that employers are expecting a mean basic pay increase of 3.8% in the 12 months to July 2025.
"This is the highest figure for wage intentions recorded in any of our six surveys published to date," the AHRI said in its report. "The upward pressure on wages is consistent with the latest ABS data, which indicates that wages grew by 4.1% in the 12 months to March 2024."
Source: The September Quarterly Australian Work Outlook
According to the report, expectations in the mean basic pay increase among organisations is up from the three per cent previously expected for the 12 months to April 2025.
Wage expectations are also relatively higher in the public sector, with 4.6%, than in the private sector with 3.9%.