SEEK Advertised Salary Growth Elevated But Slowed In January

The SEEK Advertised Salary Index rose a modest 0.2% m/m in January and 4.4% y/y. This had eased from December’s 0.3% m/m and 4.6% y/y. It is too early to call a peak in advertised salaries but the monthly rate has slowed for two consecutive months now and SEEK notes that the labour market remains tight but not as tight as it was as job ads have eased. The slowing in the pace of advertised salaries along with the more moderate WPI should ease any wages concerns at the RBA.

• There is a broader range of sectors now showing more moderate salary growth. But as the advertised salaries continue to run ahead of the WPI, SEEK observes that there is still a “bidding war for talent” and so an effective way to get a pay rise is to change jobs.
• There are disparities across the country. Salary growth in NSW and Victoria are below the national average at 4.2% and 4.1% respectively but in Tasmania it is growing at 6.4% and 5.4% in Queensland.
• There are also signs that wages are picking up in the public sector with the gap between the ACT and others narrowing and government and other public areas, such as healthcare and education, have seen a pickup in advertised salary growth.

Source: MNI - Market News/SEEK/ABS