Australia’s wage growth showed a slight slowdown in the second quarter of the year, with the wage price index rising by 0.8% compared to the previous quarter. This figure was slightly lower than the 0.9% increase seen in the first quarter, and it fell short of expectations for another 0.9% rise. However, on an annual basis, wage growth remained steady at 4.1%, unchanged from the first quarter.
When we look at the private sector specifically, we see that wage growth slowed to 0.7% in the second quarter, down from 0.9% in the previous quarter. This marks the lowest increase for a second quarter since 2021 and ties for the lowest growth for any quarter since the fourth quarter of 2021. On the other hand, public sector wages saw a stronger increase of 0.9% compared to the previous quarter’s 0.6% growth. This is the strongest June quarter increase in the public sector since 2012.
The stronger rise in public sector wages was attributed to the synchronized timing of Commonwealth public sector agreement increases. This played a key role in boosting wage growth in the public sector compared to the private sector.
Overall, while the wage growth numbers may not have met expectations in the second quarter, the steady annual growth suggests some stability in the wage market. It will be interesting to see how these trends continue in the coming quarters and whether any policy changes or economic developments will impact wage growth moving forward.
