Inflation remains to be biting arduous into the pay packets of Australian employees, regardless of a rise in wages progress.
According to the Australian Bureau of Statistics’ newest Wage Price Index report launched on Wednesday, wages elevated 3.7 per cent over the 12 months to the March quarter.
But inflation, whereas declining, is at 7 per cent – effectively above the Reserve Bank’s aim of 2-3 per cent.
The ACTU has welcomed the expansion in wages, however says there may be nonetheless an extended technique to go.
“Even with inflation starting to fall, the latest wage growth figures are still growing at barely half the rate of inflation,” ACTU secretary Sally McManus mentioned.
“Measured over the past 12 months, workers have faced an average real wage cut of 3.3 per cent.”
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At least one economist believes the RBA board will once more increase the official rate of interest at its June 6 assembly.
“CPI inflation is being increasingly driven by components that are more sensitive to labour costs,” mentioned Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.
“We have been expecting the RBA will raise rates at least once more and these data do nothing to change that call.”
Treasurer Jim Chalmers mentioned increased wages are the answer to, not the reason for, excessive inflation.
“We have an inflation challenge for a whole range of other reasons, not because people have been getting paid too much,” mentioned Dr Chalmers.
“If anything, for the best part of a decade, wages have been too stagnant.
“We want people who work hard to be able to provide for their loved ones and get ahead; that has been absent for too long; we’re starting to turn that around and that’s a good thing, not a bad thing.”
The ABS mentioned wages had been up 0.8 per cent in comparison with the earlier quarter.
The most important business contributors to wage progress had been schooling and coaching at 1.5 per cent {and professional}, scientific and technical companies at 0.9 per cent.
“An increase in the size of average hourly wage change in both the private and public sector was the main driver of wage growth over the quarter,” the report reads.
“Public sector wages rose 0.9 per cent over the quarter.
“Annual growth increased from 2.5 per cent in the December quarter 2022, to 3.0 per cent in the March quarter 2023. This is the highest annual growth since the March quarter of 2013.
“While the public sector recorded higher quarterly growth, the much larger size of the private sector meant it was the main driver of Australian wage growth.”
During the March 2023 quarter, 60 per cent of jobs reported a better wage rise than the yr prior – the very best proportion recorded for the reason that figures started being collated in 2003.
Public sector wage agreements coming into impact, and common March quarter will increase, resulted within the highest proportion of public sector jobs to obtain a wage rise in additional than 4 years.
The ACT skilled the very best quarterly progress at 1.3 per cent and South Australia and Northern Territory the bottom at 0.6 per cent.
Western Australia and Tasmania had the very best annual improve in wages at 4.1 per cent, whereas the Northern Territory recorded the bottom at 2.9 per cent.
The launch of the wages figures coincides with the Fair Work Commission holding a listening to of its annual wage assessment.
Source: www.perthnow.com.au
