Australia’s wage price index rose 0.9% qoq in Q4, decelerating from the previous quarter’s 1.3% qoq increase, but in line with market expectations. Annually, wage growth ticked up from 4.1% yoy to 4.2% yoy, marking the highest rate since Q1 2009.
A closer look at sector-specific data reveals that private sector annual wage growth slowed slightly from 4.3% yoy to yoy. In contrast, public sector wage growth accelerated sharply from 3.5% yoy to 4.3% yoy, the highest rate since Q1 2010.
The surge in public sector wages underscores the impact of cyclical patterns of enterprise bargaining, as highlighted by Michelle Marquardt, ABS head of prices statistics. She noted, “In the December quarter 2023, 38 percent of public sector jobs saw a wage rise, considerably higher than the 29 percent from the same quarter in the previous year.”
Furthermore, average hourly wage change for these jobs escalated to 4.3%, surpassing 2.8% recorded at the same time last year and achieving the highest level since September 2008.
