Australia’s wage growth picks up but short of inflation
CANBERRA, Aug. 17– Data released by the Australian Bureau of Statistics on Wednesday showed Australia’s Wage Price Index rising 2.6 percent in the year to June but it still lagged behind inflation. Michelle Marquardt, head of Prices Statistics at the ABS, said after three quarters of consistent wage growth, driven mostly by wage rises across the private sector,…
CANBERRA, Aug. 17 (Xinhua) — Data released by the Australian Bureau of Statistics (ABS) on Wednesday showed Australia’s Wage Price Index rising 2.6 percent in the year to June but it still lagged behind inflation.
The Index rose 0.7 percent in June quarter for the third consecutive quarter, according to data from ABS.
Michelle Marquardt, head of Prices Statistics at the ABS, said after three quarters of consistent wage growth, driven mostly by wage rises across the private sector, the annual rate of growth was 2.6 percent.
“This is the highest annual rate of wages growth since September 2014,” said Marquardt.
“Expanding demand for skilled jobs over the last 12 months has continued to build wage pressure across a broader range of industries and jobs, reflected in the increasing size of pay rises.”
However, according to data released by ABS last month, the Consumer Price Index rose by 1.8 percent in the June quarter and 6.1 percent over the last 12 months, meaning workers took an about 3.5 percent real wage cut over the past year.
“There is no sugar-coating the fact that real wages for Australians have gone backwards,” Treasurer Jim Chalmers said in a media release on Wednesday.
“The harsh reality is that even with this stronger outcome, real wages growth will take some time to return.”
He pointed out that due to “the wasted opportunities, wrong priorities and wilful neglect” of the previous government, real wage growth averaged just 0.1 percent a year over the past decade.
“Wages growth will be a key topic of discussion at next month’s Jobs and Skills Summit in Canberra,” Chalmers said. Enditem
