Wages have lifted 0.8 per cent over the past three months, recording the best December quarter in a decade.
Figures from the Australian Bureau of Statistics revealed the annual pay picked as much as 3.3 per cent, beneath an anticipated 3.5 per cent acquire.
ABS head of costs statistics Michelle Marquardt mentioned the rise in hourly wage charges for the December 2022 quarter was decrease than the 1.1 per cent improve for the September quarter.
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“It was, however, higher than any December quarter increase across the last decade,” Ms Marquardt mentioned.
“This follows on from the September and June 2022 quarters which were also higher than their comparable quarters back to 2012.
“In combination these quarterly increases have resulted in the highest annual growth in hourly wages since December quarter 2012.”
BIS Oxford Economics’ head of macroeconomic forecasting, Sean Langcake, mentioned the WPI is beneath expectation, exhibiting the breakout in wages progress isn’t as dangerous because the RBA had feared.
“These came in a little bit softer than expected, certainly both the market and the RBA expected it stronger,” Mr Langcake mentioned.
“It’s still a pretty brisk pace of wage growth but it’s not signalling the break out of wages growth the RBA has been fearing and concerned about.
“Unfortunately, we just have to wait to see how things play out.”
Employment Minister Tony Burke mentioned the Albanese authorities welcomed the brand new figures.
“Wages growth isn’t the problem when it comes to inflation, it’s part of the solution to cost of living pressures,” Mr Burke mentioned.
“We don’t have an inflation challenge in our economy because wages are too high, but because of a war in Ukraine, pressure on global supply chains and other challenges in our own economy ignored for too long.
“We seek wages growth which is strong and sustainable, and an economy which is more productive, competitive and inclusive.”
He mentioned industries with the strongest WPI progress within the December quarter have been lodging and meals providers, arts and recreation providers and manufacturing.
Mr Langcake warned he doesn’t imagine the newest wage progress will imply the RBA believes “their work is done”, forecasting additional inflation charge hikes over the subsequent three months.
“They’re going to be concerned until inflation is relatively on its way back down,” he mentioned.
The ABS information confirmed personal sector wage progress over the quarter (0.8 per cent) was barely larger than within the public sector (0.7 per cent).
Mr Langcake mentioned it wasn’t “surprising” the nation recorded its highest annual progress in hourly wages in additional than a decade.
“The unemployment rate is the lowest it’s been in 40 years and has been for about six months; those things should go hand in hand,” he mentioned.
“When the unemployment rate is really low, labour is very scarce and the market has to pay for it.
“I think, really, the labour market is operating as expected.
“Policy makers will be really wanting to guard against a world where people can expect four or five per cent inflation increase.”
Source: www.perthnow.com.au
