The Wage Price Index (WPI) rose 0.8 per cent in the June quarter 2023, and 3.6 per cent annually, according to seasonally adjusted data released today by the Australian Bureau of Statistics (ABS).
Michelle Marquardt, ABS head of prices statistics, said: "For the third consecutive quarter, wages grew 0.8 per cent. Wage rises from regular June quarter salary reviews were higher than in the same period last year, as recent cost of living and labour market pressures were incorporated into organisation-wide decisions on wages."
Annually, wage growth eased slightly from the 3.7 per cent recorded in March to 3.6 per cent for the year to June. The annual growth rate remains at levels comparable to those last seen in 2012.
| Quarterly (%) | Annual (%) | |
|---|---|---|
| Jun-10 | 0.8 | 3.0 |
| Sep-10 | 1.1 | 3.6 |
| Dec-10 | 1.0 | 3.9 |
| Mar-11 | 0.9 | 3.9 |
| Jun-11 | 0.7 | 3.8 |
| Sep-11 | 0.8 | 3.6 |
| Dec-11 | 1.0 | 3.6 |
| Mar-12 | 1.0 | 3.6 |
| Jun-12 | 0.9 | 3.8 |
| Sep-12 | 0.8 | 3.8 |
| Dec-12 | 0.7 | 3.4 |
| Mar-13 | 0.7 | 3.1 |
| Jun-13 | 0.6 | 2.8 |
| Sep-13 | 0.6 | 2.6 |
| Dec-13 | 0.7 | 2.6 |
| Mar-14 | 0.8 | 2.7 |
| Jun-14 | 0.5 | 2.6 |
| Sep-14 | 0.6 | 2.6 |
| Dec-14 | 0.6 | 2.5 |
| Mar-15 | 0.6 | 2.3 |
| Jun-15 | 0.5 | 2.3 |
| Sep-15 | 0.6 | 2.3 |
| Dec-15 | 0.5 | 2.2 |
| Mar-16 | 0.5 | 2.1 |
| Jun-16 | 0.5 | 2.1 |
| Sep-16 | 0.4 | 1.9 |
| Dec-16 | 0.5 | 1.9 |
| Mar-17 | 0.6 | 1.9 |
| Jun-17 | 0.5 | 1.9 |
| Sep-17 | 0.5 | 2.0 |
| Dec-17 | 0.6 | 2.1 |
| Mar-18 | 0.5 | 2.0 |
| Jun-18 | 0.6 | 2.1 |
| Sep-18 | 0.6 | 2.3 |
| Dec-18 | 0.6 | 2.4 |
| Mar-19 | 0.5 | 2.3 |
| Jun-19 | 0.6 | 2.3 |
| Sep-19 | 0.5 | 2.2 |
| Dec-19 | 0.5 | 2.1 |
| Mar-20 | 0.5 | 2.2 |
| Jun-20 | 0.2 | 1.8 |
| Sep-20 | 0.1 | 1.4 |
| Dec-20 | 0.5 | 1.4 |
| Mar-21 | 0.5 | 1.4 |
| Jun-21 | 0.6 | 1.8 |
| Sep-21 | 0.5 | 2.2 |
| Dec-21 | 0.7 | 2.3 |
| Mar-22 | 0.6 | 2.4 |
| Jun-22 | 0.9 | 2.6 |
| Sep-22 | 1.1 | 3.2 |
| Dec-22 | 0.8 | 3.4 |
| Mar-23 | 0.8 | 3.7 |
| Jun-23 | 0.8 | 3.6 |
a. Wages growth is calculated from index numbers that have been rounded to one decimal place. The contribution of sub-indexes may not be additive due to rounding.
"Compared to a year ago, fewer jobs had wage increases this quarter, however, on average, the increases received were higher. In particular, the share of jobs which received increases above 3 per cent was the highest for a June quarter since 2012," Ms Marquardt said.
| Total % | > 0 to 2% | > 2 to 3% | > 3 to 4% | > 4 to 6% | > 6% | |
|---|---|---|---|---|---|---|
| Jun-10 | 13.0 | 2.9 | 2.7 | 3.7 | 2.8 | 0.9 |
| Jun-11 | 14.4 | 2.2 | 3.0 | 4.3 | 3.1 | 1.8 |
| Jun-12 | 15.1 | 2.1 | 3.4 | 5.0 | 2.6 | 2.0 |
| Jun-13 | 13.0 | 2.4 | 4.3 | 3.1 | 2.0 | 1.2 |
| Jun-14 | 11.9 | 2.9 | 4.7 | 2.3 | 1.3 | 0.7 |
| Jun-15 | 12.3 | 3.0 | 5.5 | 2.3 | 1.1 | 0.4 |
| Jun-16 | 11.2 | 3.3 | 5.5 | 1.4 | 0.7 | 0.3 |
| Jun-17 | 10.9 | 3.5 | 5.3 | 1.3 | 0.6 | 0.2 |
| Jun-18 | 13.3 | 4.3 | 5.1 | 3.1 | 0.6 | 0.2 |
| Jun-19 | 13.5 | 4.6 | 5.0 | 2.9 | 0.7 | 0.3 |
| Jun-20 | 10.8 | 3.6 | 4.7 | 1.5 | 0.7 | 0.3 |
| Jun-21 | 10.9 | 6.0 | 3.0 | 0.8 | 0.5 | 0.6 |
| Jun-22 | 13.8 | 4.3 | 5.9 | 1.3 | 1.3 | 1.0 |
| Jun-23 | 12.6 | 2.3 | 3.4 | 2.1 | 3.3 | 1.5 |
a. Index series is original, total hourly rates of pay excluding bonuses.
Private sector wages grew 0.8 per cent over the June quarter. Annual growth for the sector was 3.8 per cent, in line with March quarter 2023.
Public sector wages rose 0.7 per cent over the quarter, with annual growth of 3.1 per cent the highest recorded for the sector since March quarter 2013. Enterprise agreement bargaining outcomes, together with regular scheduled rises drove the increase in public sector wages.
| Private (%) | Public (%) | |
|---|---|---|
| Jun-10 | 2.8 | 4.0 |
| Sep-10 | 3.5 | 4.0 |
| Dec-10 | 3.8 | 4.0 |
| Mar-11 | 4.0 | 3.6 |
| Jun-11 | 3.8 | 3.7 |
| Sep-11 | 3.7 | 3.3 |
| Dec-11 | 3.8 | 3.2 |
| Mar-12 | 3.7 | 3.1 |
| Jun-12 | 3.9 | 3.3 |
| Sep-12 | 3.7 | 3.4 |
| Dec-12 | 3.4 | 3.3 |
| Mar-13 | 3.2 | 3.1 |
| Jun-13 | 3.0 | 2.8 |
| Sep-13 | 2.8 | 2.6 |
| Dec-13 | 2.5 | 2.7 |
| Mar-14 | 2.6 | 2.9 |
| Jun-14 | 2.4 | 2.8 |
| Sep-14 | 2.4 | 2.7 |
| Dec-14 | 2.5 | 2.7 |
| Mar-15 | 2.2 | 2.5 |
| Jun-15 | 2.2 | 2.5 |
| Sep-15 | 2.1 | 2.7 |
| Dec-15 | 2.0 | 2.6 |
| Mar-16 | 2.0 | 2.5 |
| Jun-16 | 2.0 | 2.4 |
| Sep-16 | 1.9 | 2.3 |
| Dec-16 | 1.8 | 2.3 |
| Mar-17 | 1.8 | 2.3 |
| Jun-17 | 1.8 | 2.5 |
| Sep-17 | 1.9 | 2.4 |
| Dec-17 | 1.9 | 2.4 |
| Mar-18 | 1.9 | 2.4 |
| Jun-18 | 2.1 | 2.3 |
| Sep-18 | 2.1 | 2.6 |
| Dec-18 | 2.3 | 2.5 |
| Mar-19 | 2.4 | 2.4 |
| Jun-19 | 2.3 | 2.6 |
| Sep-19 | 2.2 | 2.4 |
| Dec-19 | 2.2 | 2.2 |
| Mar-20 | 2.1 | 2.3 |
| Jun-20 | 1.7 | 2.1 |
| Sep-20 | 1.2 | 1.8 |
| Dec-20 | 1.3 | 1.6 |
| Mar-21 | 1.5 | 1.5 |
| Jun-21 | 1.9 | 1.3 |
| Sep-21 | 2.4 | 1.7 |
| Dec-21 | 2.5 | 2.2 |
| Mar-22 | 2.4 | 2.2 |
| Jun-22 | 2.7 | 2.4 |
| Sep-22 | 3.4 | 2.4 |
| Dec-22 | 3.6 | 2.5 |
| Mar-23 | 3.8 | 3.0 |
| Jun-23 | 3.8 | 3.1 |
a. Wages growth is calculated from index numbers that have been rounded to one decimal place. The contribution of sub-indexes may not be additive due to rounding.
While not affecting the hourly earnings measured in the WPI, changes recorded in employment levels and hours worked in the labour market can influence average earnings. These changes will be reflected in Average Weekly Earnings, released on Thursday 17 August 2023.
