Data released by the Australian Bureau of Statistics on Wednesday revealed that wages grew at the slowest pace since data began collection nearly two decades ago. For the year up to March, seasonally adjusted wages grew at 2.3 per cent, according to official data. The ABS noted that the data was “the lowest rates of wages growth recorded since the start of the series.” Private sector wage growth came in at 2.2 per cent while public sector wages grew at 2.4 per cent.
Quarterly wage growth on a trend basis also fell behind. It recorded the slowest growth in six years. Wages grew a mere 0.5 per cent in the March quarter, “the smallest quarterly increase since September quarter 2009,” said the ABS. Growth across most industries was subdued, with wages in administration and support services increasing by only 0.1 per cent. Wages in education and training industry increased the greatest, rising 1 per cent in March.
On a state-to-state basis, Victoria saw the largest wage growth at 2.6 per cent. The smallest wage growth was found in ACT at 1.8 per cent. Victoria also recorded the largest quarterly public wage rise of 1 per cent. The region also recorded the largest 12-month rise in public sector wages through March at 3.2 per cent. The official data came in lower than analysts had projected. A survey of analysts by Bloomberg had predicted a 0.6 per cent rise in the March quarter, which would account for a 2.4 per cent gain over the year to March. Although wages data was lower than expected, it still outpaced the 1.3 per cent inflation rate.
Author: Matthew Dibb
May 13, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.