Wages up 1% for the quarter (3.1% for the year) – driven by private sector

Source: ABS

Key statistics

In September quarter 2022 the seasonally adjusted WPI:

• Rose 1.0% this quarter and 3.1% over the year.
• The private sector rose 1.2% and the public sector rose 0.6%.

Private sector wages registered their highest quarterly growth rates since September 2010.

Overview

Private sector drives WPI increases

An increase in the average size of hourly wage rises in the private sector was the main driver of wages growth over the quarter.

Seasonally adjusted private sector wages rose 1.2% over the September quarter 2022, the highest quarterly rate of wages growth since September quarter 2010. Through the year growth lifted to 3.4%, the highest annual rate since December quarter 2012.

Through the year growth in public sector wages was the same this quarter as it was last quarter, and similar to rates recorded before the pandemic (2.4%).

Jobs paid under individual arrangements strongest contributor to wages growth

The contribution by different methods of setting pay, shows jobs covered by individual arrangements drove a significant proportion of September quarter 2022 growth. Many of these jobs are market sensitive and tend to react more quickly to labour market conditions. Some individual arrangement jobs have also been directly influenced by the Fair Work Commission Annual Wage Review with increases benchmarked against the size and timing of this decision.

This year the Fair Work Commission Annual Wage Review decision issued increases for award wages of between 4.6% and 5.2%. The increases in award wages are scheduled to be paid in two stages, with the majority of award-based rises paid in the September quarter 2022.

Read more : ABS

DataNovember qaurterWagesWPI