Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
The Wage Price Index rose slightly more than expected in Q3 at 1.0% q/q and 3.1% y/y. This was well above Q2’s 0.7% q/q and 2.6% y/y but still consistent with the RBA’s inflation target and below other developed countries. This data is not yet giving an indication of a wage-price spiral that the RBA is watching for signs of, but it is showing the effect of labour shortages.
- This was the highest quarterly increase in wages in over 10 years, driven by labour shortages, the 5.2% increase in the national minimum wage in July and end of financial year pay reviews. The latter two won’t be factors in the Q4 data.
- Private sector wages rose 1.2% q/q while public sector increased only 0.6%. The public sector is likely to catch up, as multi-year pay agreements expire and are re-negotiated. The trough in private sector wages led the public sector by around 3 quarters. 30% of public sector employees received a pay increase in Q3 but it averaged a muted 2.3%.
- The average size of private sector hourly pay increases rose further to 4.3% from 3.8% last quarter and 2.8% a year ago. This measure of wages has been running ahead of the private sector WPI.
- Almost half of private sector employees received an hourly wage increase (46.4%) compared to 33.9% in Q3 2021. Over half of these people had received their last pay rise a year ago.
- The July increase in the minimum wage was a major contributor to pay increases in the retail, administrative, accommodation and food sectors.
Australia wages growth ex bonuses y/y%
Source: MNI - Market News/ABS/SEEK
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok