Monthly wages surge 3.9% even as annual growth slows across most industries
Total wages and salaries paid by Australian employers rose by 3.9%, or $3.9 billion, between August and September 2024, reaching a record $103.7 billion, according to data released by the Australian Bureau of Statistics (ABS) on Wednesday.
Bjorn Jarvis (pictured above), ABS head of labour statistics, said the September figure marked an all-time monthly high and compared to $97.5 billion in September 2023 and $90.9 billion in September 2022.
“This growth follows the pattern we’ve seen over the last two years, given a range of industries pay periodic bonuses at the end of the September quarter,” Jarvis said.
The rise in total wages and salaries reflects a combination of factors, including underlying wage growth, variations in hours worked, one-off payments like bonuses and backpay, and overall employment growth.
However, annual growth in total wages and salaries slowed to 6.3% in September 2024 compared to 7.3% in the year to September 2023, the recently published data has revealed.
All 19 industries recorded an increase in wages and salaries between August and September 2024, though the strongest rises occurred in industries that typically pay periodic bonuses at this time of year. Six industries contributed $2.3 billion, or three-fifths, of the monthly increase in wages and salaries, consistent with previous trends.
Annual growth in wages and salaries slowed in 14 of the 19 industries over the past year. Accommodation and food services experienced the weakest growth, rising 2.8% in the year to September 2024, down from 7.8% in the previous year when the industry was recovering from pandemic-related impacts.
“The lower annual growth in this sector reflects weaker economic conditions and consumer demand compared to a year ago, aligning with trends seen in other labour statistics, including the Labour Account,” Jarvis said.
Five industries recorded higher annual growth in wages and salaries compared to the previous year. Public administration and safety saw the largest increase, growing 11.8% in the year to September 2024, up from 8.4% a year earlier. This was partly driven by a one-off lump sum payment under the new enterprise agreement for the Victorian Public Service.
Between August and September 2024, total wages and salaries rose in all states and territories except for the Northern Territory, which saw a 1.9% decline. Annual growth to September 2024 was lower than a year earlier in all states and territories, except Victoria. The state recorded slightly higher annual growth of 6.3% in 2024 compared to 6% in 2023.
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