Latest ABS figures are good news for employers but bad news for businesses hoping for a consumer spending boost, with wage growth continuing to track sideways.
Over the last financial year, wages increased by 2.1 per cent (and up 0.6 per cent for the June quarter), matching inflation which also climbed to 2.1 per cent in the June quarter (from just 1.9 per cent in the March quarter, below the RBA’s target of 2 to 3 per cent).
Private sector wages remain below inflation, rising by 2 per cent, while the public sector boosted wages by 2.4 per cent.
Victoria and Tasmania tied for the fastest uptick in wages at 2.5 per cent for the year, while Western Australia and the Northern Territory saw real wages continue to fall, rising by only 1.5 per cent.
At an industry level, mining continues to see the most subdued rates of wage growth at 1.3 per cent, while operators in healthcare and social assistance will be unsurprised to learn they posted the highest rate of wage growth at 2.7 per cent.
Figures last month from online jobs board Seek found that the fastest rates of wage growth is among the lowest-paid professions, while those industries where the average salary is above $100,000 have seen wages fall over the last five years.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.