Cost-of-living, labour market pressures factor into recent wage decisions
Average wages went up for the third consecutive period in Australia despite fewer employers hiking wages during the period, according to the Australian Bureau of Statistics (ABS) on Monday.
The Wage Price Index rose 0.8% in the June quarter 2023, while it eased annually to 3.6%.
Fewer jobs had wage increases this quarter, according to the ABS, but the average increases received were higher.
"Wage rises from regular June quarter salary reviews were higher than in the same period last year, as recent cost-of-living and labour market pressures were incorporated into organisation-wide decisions on wages," said Michelle Marquardt, ABS head of prices statistics, in a media release.
Major boost to ages in public sector
The public sector recorded its highest annual increase since the March quarter of 2013 with a 3.1% annual growth, according to the ABS.
"Enterprise agreement bargaining outcomes, together with regular scheduled rises drove the increase in public sector wages.”
Over the quarter, public sector wages saw a 0.7%, while the private sector saw a 0.8%. Annually, the private sector recorded a 3.8% growth, in line with March quarter 2023.
'Solid' growth for Australia wages
The government described the latest wage growth figures as "solid" after the previous governments spent a decade "suppressing wages."
"This is the first time in three years that quarterly wages have kept up with inflation – and much better than the fall of 1.5% in the March quarter 2022," Treasurer Jum Chalmers and Employment Minister Tony Burke said in a joint media release.
"We welcome solid wages growth, after our predecessors spent a decade deliberately suppressing wages."
Despite this, the government said it is anticipating volatility in the next few quarters, with annual real wages expected to grow in early 2024.
"Securing real wages growth requires getting inflation under control – that's why the Albanese Government's number one priority is dealing with the inflation challenge and providing cost-of-living relief," the government said.
"It also involves closing the loopholes that undercut wages - and that's what our next workplace relations changes will do."
The government recently enacted into law the controversial Secure Jobs, Better Pay Act 2022, which expanded multi-employer bargaining and eliminated pay secrecy clauses.
