Public sector wages outpace private sector gains
Annual wage growth dropped to 3.5% in the September quarter, marking the first time it has fallen below 4% since June quarter 2023, according to data released by the Australian Bureau of Statistics (ABS).
The percentage of jobs that saw wage changes was similar year-on-year, with 45% of jobs experiencing a wage adjustment in the September quarter of 2024, compared to 46% in the same period in 2023.
However, the average size of hourly wage increases declined, rising 3.7% in the September quarter compared to 5.4% in the previous year.
Michelle Marquardt (pictured above), ABS head of prices statistics, attributed some of the wage growth deceleration to recent decisions by the Fair Work Commission.
“Wage rises for many jobs can be directly or indirectly linked to the outcomes of the Fair Work Commission Annual Wage Review decision,” Marquardt said. “The latest decision of a 3.75% wage increase paid from July 1, 2024 was lower than the September quarter 2023 increase of 5.75%. It was also lower than the commission’s September quarter 2022 awarded increase of between 4.6% and 5.2%.”
The latest Wage Price Index also showed that public sector wage growth outpaced the private sector on an annual basis for the first time since December 2020. Public sector wages grew by 3.7% annually, slightly up from 3.5% in the same quarter last year, though below the recent peak of 4.2% in December 2023.
Private sector wage growth slowed to 3.5% in the September quarter, marking the lowest growth rate since September 2022.
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