Australian wages record highest quarterly jump in history

Australian wages have recorded the largest quarterly growth in the 26-year history of the Wage Price Index, but still remain below the level of inflation.

New data from the Australian Bureau of Statistics (ABS) showed the Wage Price Index (WPI) grew 1.3 per cent in the September quarter, the largest three-month jump since the WPI began.

On an annual basis, wages are tracking at 4 per cent growth, the highest recorded since March 2009.

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Michelle Marquardt, ABS head of prices statistics, said the Fair Work Commission’s decision on the pay packets of aged care workers heavily influenced the data.

“A combination of factors led to widespread increases in average hourly wages this quarter,” Marquardt said.

“In the private sector, higher growth was mainly driven by the Fair Work Commission’s annual wage review decision, the application of the Aged Care Work Value case, labour market pressure, and CPI rises being factored into wage and salary review decisions.

“The public sector was affected by the removal of state wage caps and new enterprise agreements coming into effect following the finalisation of various bargaining rounds.”

Annual growth of wages is still tracking below inflation, currently sitting at an annual rate of 5.4 per cent.

More to come …