The ABS released September quarter wages figures which were largely in line with market expectations. Private sector wages grew at the lowest rate since the data series began in September 1998 for the second quarter in a row. Seasonally adjusted private sector wages growth for the year to the September quarter 2015 was 2.2%, again smaller than public sector figure of 2.5%. In both sectors, the increase for the September quarter was the same as the increase for the June quarter. Through the year, the joint figure for the combined private / public sectors rose 2.1%, down from the June result of 2.3%.
In the June quarter, WA had the lowest private sector growth of all states due to weakness in the resources sector. The state again scored the lowest rate of growth for the September quarter, recording a rise of 0.5%. South Australia and Tasmania shared the prize for the highest growth rates, recording 1.2% over the quarter, and making it the third quarter in a row for Tasmania.
AMP Capital’s Shane Oliver said the figures explains the Australian economy’s resistance to rising unemployment. Low wages growth “partly explains why jobs growth has been able to come in better than expected despite the slow rate of economic growth.” The 10 year bond yield finished at the low for the day at 2.925%, down 2.5bps.
