Wages rose 2.2% in the past year, outpaced by inflation
Harrison Astbury | Nov 17, 2021 12:04
The ABS' wage price index moved up to an annualised rate of 2.2% in September, edging higher but still lagging behind inflation.
Wages grew 0.6% over the September quarter, and the annualised rate now represents a more 'normal' pre-pandemic pattern according to the ABS.
ABS' head of price statistics Michelle Marquardt explained the reasons for the results.
"Wage and salary reviews around the end of the financial year, scheduled enterprise agreements and annual award rises all contributed to growth. Pockets of wage pressure continued to build for skilled construction-related, technical and business services roles, leading to larger ad hoc rises as businesses looked to retain experienced staff and attract new staff," Ms Marquardt said.
Inflation over the same period edged upwards to an annualised rate of 3.0%, implying a real wages slump of 0.8%.
The private sector led the annualised wage rise, up 2.4% - ahead of the public sector (+1.7%) given many jobs in the public arena still face wage freezes.
That said, this was the first public sector annual wage increase since the 2020 March quarter.
By sector, quarterly wage growth was led by the professional, scientific and technical services industry - up 1.3%.
By state, ACT led the quarterly growth up 1.0%, and annually, it was Tasmania - up 2.7%.
h2 The uncomfortable wage talk/h2The ABS also now reports on the frequency of wage increases for jobs pre-covid compared to now.
It found over the past decade the index would see 35 to 40% of jobs record a wage rise in the September quarter.
Since covid, it has been much lower - in the September quarter 2020, the figure was around 20% attributed to a postponement of wage discussions, and wage freezes.
September 2021, according to the ABS, marks a return to the pre-covid range.
Westpac economist Justin Smirk said the talk about wage negotiation was overblown.
"There has been a lot of press lately of bonus being paid to entice experienced workers by various employers," Mr Smirk said.
"It appears that the use of bonus are, at this stage, not as widespread as reported.
"While wages have indeed lifted in industries where labour shortages are more pronounced, we are yet to see broader wage gains.
"What will be critical is how higher wage outcomes in these sectors, via individual bargaining arrangements, spread to the minimum wage and enterprise bargaining."
"Wages rose 2.2% in the past year, outpaced by inflation " was originally published on Savings.com.au and was republished with permission.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.