Wages have responded to the tight labour market, rising 3.7 per cent annually in the March quarter.
On a quarterly basis, the Australian Bureau of Statistics’ wage price index lifted 0.8 per cent.
ABS acting head of prices statistic Leigh Merrington said annual wage growth was at its highest level since September quarter 2012 due to low unemployment, a tight labour market and high inflation.
Mr Merrington said the private sector was the main driver of growth.
“A number of private sector industries have recorded annual wages growth above four per cent, with the remaining industries all above three per cent annual growth,” he said.
Analysts were expecting 0.9 per cent quarterly wage growth and for the index to be up 3.6 per cent on the year thanks to pressure in the labour market.
The index lifted 3.4 per cent annually in the December quarter.
The pace of wage growth is watched carefully by the Reserve Bank, with too much pressure from worker pay rises a marker of persistent inflation.
The RBA is comfortable with wage growth between 3.5 and four per cent as it seeks to return inflation to target by mid-2025 while keeping most people employed.
For workers, wage increases have been welcome but salary boosts have been outpaced by fast-rising consumer prices.
Inflation has likely passed its peak but at seven per cent annual growth in the March quarter, households are still under pressure from high living costs.
– AAP
