Growth in Australian wages remained unchanged during the June quarter – according to the Australian Bureau of Statistics (ABS) – although the market had expected a slightly stronger number.
The seasonally adjusted Wage Price Index for the June quarter rose 0.8% – the same figure as in the March quarter – although the market had priced in a rise to 0.9% for the period.
Across the whole year, the WPI rose 4.1% – and this too had not changed, although it came in slightly above the 4.0% expectation. This continues the trend of annual wage growth remaining above 4.0% since the September quarter of 2023.
The public sector is storming ahead in terms of wage growth, with a seasonally adjusted rise of 0.9% for the June quarter. This was not only a lift from last quarter’s 0.6% reading, but also represents the highest rise for the sector in a June quarter since 2012, when it came in at 1.0%.
Looking at the year to June 2024, public sector wages registered a rise of 3.9%: this was an increase from the 3.8% annual rise in the previous quarter, as well as the 3.1% recorded in the same period last year.
But private sector wages appear to be trending in the opposite direction: their growth for the June quarter was 0.7% – the equal lowest rise for the sector since December quarter 2021.
Similarly, private sector wage growth for the year to June quarter 2024 was 4.1%, following three consecutive quarters showing annual increases of 4.2%.
The ABS said the sectors providing the greatest boost to wage increases during the June quarter were public administration and safety (1.0%), construction (0.9%), and professional, scientific and technical services (0.7%).
The ASX200 moved up marginally on the cooler-than-expected reading, from 0.03 to 0.16%, before softening again.