Each quarter the Australian Bureau of Statistics (ABS) surveys around 3000 enterprises regarding a sample of jobs in each workplace to measure changes in the price of labour across around 18000 jobs.
According to the latest wage price index (WPI) figures published by the ABS, hourly wages grew by 0.5% in the September quarter, the same rate as in the June quarter although it was less than the market’s expectations of a 0.7% increase. The year-on-year growth rate increased from 1.9% to 2.0% (after revisions) but this rate is still barely just above the lowest growth rate since the beginning of the series in 1999.
Public sector hourly wages growth grew at a slightly higher rate than its private sector counterpart over the quarter although both figures came in at +0.5% after rounding. On an annual basis, public sector hourly pay maintained its 2.4% growth rate while the comparable figures for the private sector increased from 1.8% to 1.9%.
When June’s figures were published, ANZ senior economist Felicity Emmett said she expected September quarter figures to “pop higher” as a result of the increase in the minimum wage rate in June. After the latest data release she said the figures implied overall wages growth had slowed if the minimum wage decision was factored in. “The lack of any apparent impact from the larger-than-usual rise in the minimum wage suggests that underlying wage growth actually slowed in the quarter.” In her opinion further falls in the unemployment rate will be required “before we see a more sustained rise in wage growth.”