Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

Wage growth still slipping

By Cameron Micallef · November 14 2019
Reading:
egg

Earn

Wage growth still slipping

By Cameron Micallef
November 14 2019
Reading:
egg
Working people at the office

Wage growth still slipping

author image
By Cameron Micallef · November 14 2019
Reading:
egg
Working people at the office

New information from the Australian Bureau of Statistics has revealed that Australian workers are continuing to struggle for a pay rise.

Pay packets grew by 2.2 per cent in the year to September, falling further behind the long-term growth trend of 3.3 per cent.

In seasonally adjusted terms, wages grew by 0.5 per cent for the September quarter.

It’s a slight fall from the 0.6 per cent quarterly growth in the year to June. 

Chief economist at the ABS Bruce Hockman said “the rate of annual wage growth eased slightly in September after being stable over the past year, continuing to grow at a slightly faster rate than consumer prices over the past year”.

Advertisement
Advertisement

Public sector wage growth has continued to outpace the private sector, having grown by 2.5 per cent, compared with 2.2 per cent.

The ABS indicated that the September quarter usually has the highest growth as the Fair Work Commission’s annual wage review, enterprise agreements and annual financial salary reviews all kick in.

It said that this year’s wage growth was triggered by enterprise agreements and financial salary review, while the Fair Work Commission’s review had a lesser impact.

Victoria had the highest through the year growth of 2.8 per cent, while Western Australia recorded the lowest at just 1.6 per cent for the fifth consecutive quarter.

Weighing in on the analysis, Indeed has outlined that a rise in unemployment for the September quarter led to weakening salary growth for employees.

Despite the appearance of lower wage growth, Indeed’s APAC economist, Callam Pickering, said that in real-world terms, the wages of Australians have increased significantly. 

In a tweet, Mr Pickering said: “Wage growth, adjusted for inflation, rose by 0.8 per cent over the past year.”

“With inflation now so low, real wage growth has climbed well above its average over the past six years.”

Wage growth still slipping
Working people at the office
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.