Join our daily newsletter At The Bell to receive exclusive market insights
The Wage Price Index (WPI) has risen to its highest point in more than ten years, according to the latest data from the Australian Bureau of Statistics (ABS).
For the three-month period to March 31, 2023, the seasonally adjusted WPI lifted 0.8 per cent and 3.7 per cent across the year.
The last time the index topped 3.7 per cent was the September 2012 quarter, where the seasonally adjusted WPI sat at 3.8 per cent.
ABS Acting Head of Prices Statistics Leigh Merrington attributed the significant wage growth to low unemployment, a tight labour market and high inflation.
Jobs in the education industry topped the nation’s biggest wage risers for the March 2023 quarter – up 1.5 per cent across the quarter.
The ABS attributed the increase to more jobs across primary education in both New South Wales and Queensland.
Another significant riser was the professional and scientific services industry, up 0.9 per cent for the quarter.
On the other end, the accommodation and food services industry recorded the lowest quarterly growth, lifting just 0.1 per cent.
Across the year, the wholesale trade and other services sector posted the highest annual growth of 4.4 per cent, while the public admin and safety industry recorded the lowest annual growth of 2.9 per cent.
The private sector rose 0.8 per cent for the quarter, while the public sector also saw a gain of 0.9 per cent. Over the year, both the private and public sectors have seen an uptick of 3.8 per cent and three per cent, respectively, seasonally adjusted.
Elsewhere, the Australian Capital Territory (ACT) posted the highest quarterly growth at 1.3 per cent, while Western Australia and Tasmania held the highest annual increase in wages at 4.1 per cent.
South Australia and Northern Territory recorded the lowest quarterly growth at 0.6 per cent. The Northern Territory saw the lowest annual growth at 2.9 per cent.
Despite the ABS reporting a contributor to wage growth across all sectors was in part due to high inflation, Treasurer Jim Chalmers has vowed that inflation is not being driven by high wages.
Time will tell as to whether wage increases will play their part in further rate rises down the track.
