Australian wage growth hit the highest mark in the last 3 years. As per the Australian Bureau of Statistics, hourly wages grew by 0.62% in the 3 months to September. This was the fastest increase in wages since 2014.
Improved labor market conditions resulted in a higher rate of wage growth across a large number of industries.
By the end of the September quarter, Australia’s unemployment rate fell to 5%. This has been the lowest in the last 6 years.
As per The Business Insider, ABS also said that the September quarter growth in wages was mainly influenced by:
- Increase to the national minimum wage
- Increase in the regularly scheduled enterprise agreement
- Modern awards and salary reviews coinciding with the financial year
Over the year, private sector wages rose by over 2.14%. It rose from 2.07% in the June quarter, which is the highest level since June 2015.
Wage growth in the public sector went up to 2.47% from the earlier 2.41% in the June quarter. This was the fastest increase since December 2015.
Wages grew by 1.8% for workers in the retail and mining sector. For workers in the health care and social assistance sectors, wages grew by 2.8%.
Western Australian workers saw their wages grow by 1.8% while Tasmanian workers saw wage growth of 2.6%. Northern Territory workers’ wages grew by 1.4%.
Victoria recorded the highest rise in the public sector at 3.3% while WA was at the lowest at 1.5%.
The underutilization rate, however, remains over 13%. Experts believe that wage growth will not surpass 3% unless the underutilization rate falls below 11%.
ABS will soon release Australia’s October jobs report which will provide updated information on both unemployment and underutilization.
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