Australian workers’ wages increased 3.7 per cent over the 12 months to the March quarter, according to the Australian Bureau of Statistics’ latest Wage Price Index report released on Wednesday.
The ABS also announced wages were up 0.8 per cent compared to the previous quarter.
The most significant industry contributors to wage growth were education and training at 1.5 per cent and professional, scientific and technical services at 0.9 per cent.
ABS graph showing the split between public (light blue) sector wage growth and private (light blue) sector wage growth since March 2010. Picture: ABS
“An increase in the size of average hourly wage change in both the private and public sector was the main driver of wage growth over the quarter,” the report reads.
“Public sector wages rose 0.9 per cent over the quarter.
“Annual growth increased from 2.5 per cent in the December quarter 2022, to 3.0 per cent in the March quarter 2023. This is the highest annual growth since the March quarter of 2013.
“While the public sector recorded higher quarterly growth, the much larger size of the private sector meant it was the main driver of Australian wage growth.”
During the March 2023 quarter, 60 per cent of jobs reported a higher wage rise than the year prior – the highest proportion recorded since the figures began being collated in 2003.
The public sector enjoyed its largest proportion of jobs receiving wage rises in four years. Picture: NCA NewsWire / Nicki Connolly
Public sector wage agreements coming into effect and regular March quarter increases resulted in the highest proportion of public sector jobs to receive a wage rise in more than four years.
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The Australian Capital Territory experienced the highest quarterly growth at 1.3 per cent and South Australia and Northern Territory the lowest at 0.6 per cent.
Western Australia and Tasmania had the highest annual increase in wages at 4.1 per cent, while the Northern Territory recorded the lowest at 2.9 per cent.