Australia - Q3 Wage Price Index due today

Cornelia Mascio
Novembre 15, 2017

The wage price index for the September quarter - the Reserve Bank's and Treasury's preferred measure of wages growth - is expected to rise by 0.7 per cent for an annual rate of 2.2 per cent, the fastest pace in nearly two years.

After seasonal adjustments, private sector wages grew by just 1.86% over the year, outpaced by a 2.37% increase for public sector workers. Economists had expected wages to rise by 0.7% on quarter and 2.2% on-year.

"This is the best result since 2015", he said.

Earlier this year, the Fair Work Commission awarded Australia's 2.3 million lowest paid workers a 3.3 per cent wage rise, which equates to $22.20 a week and was the largest increase in six years.

Wages have lagged the recovery in the Australian labour market.

In the public sector, public administration and safety had the strongest quarterly growth of 1.2 per cent, while workers in electricity, gas and water were among those with the lowest increase of 0.5 per cent.

"In original terms, through the year wage growth to the September quarter 2017 ranged from 1.2% for the mining industry to 2.7% for health care and social assistance and arts and recreation services", the ABS said.

The Australian dollar plunged after the figures were released, diving as low as 75.77 United States cents at 1306 AEDT, after trading at 76.29 U.S. cents just before the release.

"In the current environment, low wage growth points to weak inflation and makes it hard for the Reserve Bank to justify higher interest rates", he says.

Australian workers' wages remain resolutely stuck in the slow lane, despite end of year wage reviews and July's national minimum pay decision kicking in.

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