Annual wage growth remains at 4.1 per cent in June quarter

The annual wage growth rate remained at 4.1 percent in the year to June, in line with the pace set in the March quarter.

Some economists had hoped to see wage growth slow slightly in the June quarter to ease inflationary pressures. However, the slowdown in the growth of wages in the private sector was offset by an increase in wage growth in the public sector, which has supported wage growth throughout the country.

Overall, the annual pace of nationwide wage growth, at 4.1 percent, is still slightly slower than the 4.2 percent recorded at the end of 2023. “The RBA will be somewhat relieved to see wage pressures subsiding,” said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.

“However, absent an improvement in productivity growth, the current pace of wage growth is still a little too strong for inflation to return to target quickly,” he said. The new Australian Bureau of Statistics (ABS) data show private sector wages grew by 0.7 percent in the June quarter, down from 0.9 percent in the March quarter. Public sector wages rose 0.9 percent, up from 0.6 percent, seasonally adjusted.

Michelle Marquardt, ABS head of prices statistics, said the stronger June quarterly rise for the public sector was largely due to the newly synchronized timing pattern of Commonwealth public sector agreement increases. “All Australian Public Service employees received pay increases effective 14 March 2024,” she said.