Australian Wages Grow At The Slowest Pace On Record
November 16th, 2016
Australia's wages grew at the slowest pace on record in the three months to September.
According to the ABS, wages, excluding bonuses, grew by 0.4% in seasonally adjusted terms, below the 0.5% increase expected.
It was the lowest quarterly gain since the ABS survey first began in 1997. That means that wage growth is now likely running at the slowest pace since the early 1990s recession.
Private sector wages grew by just 0.405% over the quarter, again the lowest level on record.
Not great news given its the largest employer in the country.
In comparison, public sector wages increased at a relatively brisk pace of 0.56%.
Wages for accommodation and food services workers recorded the largest gain of all industries during the quarter at 1.7%. At the other end of the spectrum, mining industry wages grew by just 0.1%, the lowest of all industries surveyed.
The transition from the mining boom to the tourism boom transforming before our eyes, albeit on vastly different pay scales.
The quarterly miss saw annual wage growth slow to just 1.88%, also a record low.
From the September quarter last year, private sector wages rose by 1.89% while those in the public sector increased by 2.27%. According to the ABS, annual wage growth is now below 2.5% for all industries.
"In the September quarter 2016 wage growth ranged from 1.0 per cent for mining to 2.4 per cent for health care and social assistance," it said.