The latest figures from the Australian Bureau of Statistics (ABS) showed wages grew by 0.8 per cent in the June quarter, with annual growth down from 3.7 to 3.6 per cent – slightly lower than the RBA’s own forecast of 3.7 per cent.
The figures mean wages have increased by 0.8 per cent for three consecutive quarters, even though fewer workers received a pay rise in the latest reporting period.
”Compared to a year ago, fewer jobs had wage increases this quarter, however, on average, the increases received were higher,” Michelle Marquardt, ABS head of prices statistics, said.
“In particular, the share of jobs which received increases above 3 per cent was the highest for a June quarter since 2012.”
The ABS said the tight labour market was contributing to those higher raises.
“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,” Marquardt said.
June saw the biggest annual increase in public sector wages since March 2013, while private sector wage growth was largely consistent with last quarter.
Read Related Also: Kendrick Perkins tossed from AAU game and his ESPN colleagues loved it: ‘Blew off the gasket’
Treasurer Jim Chalmers said the data was welcome news.
“If we want to tackle the cost of living pressures that people are facing right around the country then a very good place to start is to get wages moving again so that more people can work more if they want to, earn more and provide for their loved ones,” he said.
“So this is a very welcome outcome today.”
The RBA expected annual wages growth to be at 3.7 per cent for the June quarter, according to its latest statement on monetary policy, before rising further later in the year.
The softer-than-expected wages figures will have mortgage holders hoping the RBA will keep interest rates on pause for the third consecutive month when the board meets in September.
The jobs most at risk of being replaced by artificial intelligence
Sign up here to receive our daily newsletters and breaking news alerts, sent straight to your inbox.
