Australia - Q3 Wage Price Index due today

Marco Green
November 15, 2017

Across the nation, wages grew by 0.5 per cent quarter on quarter for a year on year increase of 2 per cent.

Workers are still getting used to the "new black" of wages growth, which is running at just two per cent a year, a leading economist says.

Wages have lagged the recovery in the Australian labour market.

This was up from 1.9 per cent in the past few quarters but was still lower than expected.

With wages growing by 0.5% over the quarter, that temporary boost likely masked what would have otherwise been a record-low level for wage growth.

In the private sector, wages rose 0.5% in the third quarter from the second quarter and rose 1.9% from a year earlier.

ANZ senior economist Felicity Emmett said the lack of impact from the bigger than usual minimum wage rise suggested underlying wages growth actually slowed in the quarter.

"The higher wage growth in the September quarter was driven by enterprise agreement increases, end of financial year wage reviews and the Fair Work Commission's annual minimum wage review", Mr Hockman said.

Workers in the accommodation and food services industries had the highest quarterly rise of 1.7 per cent, while mining company employees saw their pay packets inch up by just 0.2 per cent, according to Australian Bureau of Statistics data released on Wednesday.

Callum Pickering, APAC economist at Indeed, said today's report makes it hard to justify the need for higher interest rates in Australia.

The Reserve Bank of Australia remains cautious about raising interest rates, with wages growth flat overall and inflation still well short of its target of 2-3% on year.

And he doesn't expect there'll be any meaningful improvement in wage growth for some time yet.

Other reports by Click Lancashire

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