Wage growth

December quarter wage index rose from 3.1% to 3.3%, but 7.8% inflation indicates a 4.5% decrease in real wages.

“As such, we expect inflation to subside more quickly than the RBA,” Aird said. That story is now itself a risk to the On an annual basis, those in the wholesale trade fared best with a 4.2% increase. Bassanese said the figures all but rule out a 50 basis point increase when the RBA board meets on 7 March. One-off payments made to keep or attract workers could be discarded as the economy slowed. Shares halved their losses for the day with the benchmark ASX 200 index down about 0.4% in mid-afternoon trading. That topped the previous record, set in the September quarter, of 4.2 percentage points. [Reserve Bank of Australia](https://www.theguardian.com/australia-news/reserve-bank-of-australia) has said it is monitoring wage increases closely in case a jump in salaries triggers the start of a wage-price inflation spiral. In the December quarter consumer prices rose 7.8%, indicating a 4.5% retreat in real wages once inflation is deducted. [Sign up for Guardian Australia’s free morning and afternoon](https://www.theguardian.com/australia-news/2022/oct/29/email-newsletters-guardian-australia-best-daily-news-emails-newsletter-free-sign-up-inbox-subscribe-headlines?CMP=copyembed) [email newsletters for your daily news roundup](https://www.theguardian.com/australia-news/2022/oct/29/email-newsletters-guardian-australia-best-daily-news-emails-newsletter-free-sign-up-inbox-subscribe-headlines?CMP=copyembed) It was recently trading at about 68.3 US cents. Private sector wages rose more than those in the public sector, with the 3.6% annual pace eclipsing a 2.5% rise for those in government jobs.

Market pricing for the cash rate softened after news that wages were 3.3 per cent higher in the December quarter, below the Reserve Bank of Australia's ...

He was previously an economist at the Reserve Bank of Australia and at UBS. Nevertheless, the labour market continues to track in a very tight position,” Mr Langcake said. About 21 per cent of private sector workers received pay rises in December, which was above the pre-pandemic average. “The good news for workers is that wage growth is picking up, the good news for the RBA is that the acceleration in wage growth remains reasonably modest and is not yet at a pace inconsistent with its long-run 2 to 3 per cent inflation target,” Mr Bassanese said. The central bank expects wages growth to accelerate to 4.2 per cent by the end of the year, which would be among the fastest rates of increase since records began in 1997. Pay rises for workers on individual agreements were the main driver of wages growth in 2022, contributing to almost 60 per cent of the boost to salaries in the December quarter and through the year. An increase in hospitality, aviation and tourism wages provided a modest bump to the headline growth number, due to the deferral of award wage increases for these sectors from July to October. [market expectations](https://www.afr.com/policy/economy/wages-growth-to-hit-decade-high-of-3-5pc-20230217-p5clhe), which were for wages to increase by 1 per cent in the final three months of last year and by 3.5 per cent annually. Public sector pay packets continue to lag, growing by 0.7 per cent in the final three months of 2022 to finish the year 2.5 per cent higher. But comparatively tepid rates of public sector wages growth meant salaries increased by a more modest 3.3 per cent overall, on the back of a 0.8 per cent lift in the December quarter. Private sector wages growth hit a 10-year high of 3.6 per cent in the December quarter, as workers took advantage of Australia’s extremely tight labour market to push for higher salaries. Softer-than-expected wages growth data is unlikely to allay the Reserve Bank’s fear of a wage-price spiral, economists have warned, with pay packets increasing at their fastest rate in a decade and growth tipped to accelerate further.

Despite the improvement in wages, elevated inflation continues to erode gains in worker pay. In the December quarter, inflation grew 7.8 per cent over the 12 ...

"The wage price index is a narrow measure of wage growth and these data will not completely allay the RBA's concerns over a wage-price spiral," he said. In the December quarter, inflation grew 7.8 per cent over the 12 months, taking the gap between inflation and wage growth to a record 4.5 per cent. She said the tight jobs market and high inflation were driving wage growth but there were signs the labour market had reached its turning point following negative jobs growth in December and January. Private sector wages grew 0.8 per cent over the quarter and 3.6 per cent annually, outpacing the 0.7 per cent quarterly improvement and the 2.5 per cent annual lift in public sector wages. Analysts were broadly anticipating one per cent quarterly growth and 3.5 per cent over the year in the final quarter of 2022. The Australian Bureau of Statistics' wage price index lifted 3.3 per cent annually in the December quarter and 0.8 per cent on a quarterly basis.

Australian pay grew at a weaker than expected pace in the final three months of 2022, suggesting the economy will avoid a wage-price spiral and prompting ...

On a quarterly basis wage growth actually slowed to 0.8% from an upwardly revised 1.1% in the three months through September. Australian pay grew at a weaker than expected pace in the final three months of 2022, suggesting the economy will avoid a wage-price spiral and prompting traders to pare bets on future interest-rate increases.

Tasmania is leading the nation in wage growth according to the latest ABS Wage Price Index data. Tasmania has the equal highest annual growth in wages ...

Tasmania has the equal highest annual growth in wages alongside Western Australia, with wages increasing by 3.6 per cent, compared to the national average of 3.4 per cent. “This is very positive news and once again reflects the confidence businesses have in our nation-leading economy and in the direction of our State as we look to the future with optimism. “More Tasmanians are employed today than ever before, and today’s wage growth data shows they continued to be paid more than ever before as well,” Treasurer Ferguson said.

AUSTRALIAN wages grew at the fastest annual pace in a decade last quarter but that was still short of market forecasts and could lessen the pressure for ...