Wages Surpass Inflation for the First Time in 3 Years
Good news for Australian workers as wages have surpassed the rate of inflation for the first time in three years. According to the Australian Bureau of Statistics (ABS), average full-time workers saw an increase of 4.2 percent in their pay packets for the year. This translates to an average bump of $81 for Australian workers.
The latest seasonally-adjusted figures released by the ABS for the December 2023 quarter reveal that the average weekly ordinary time earnings for adults working full-time increased by 0.9 percent to $1,888.80. This increase has exceeded the rate of inflation, which was recorded at 4.1 percent for the year to December 2023.
When it comes to regional wage growth, Western Australia takes the lead with an average of $2,108 for full-time workers. The Australian Capital Territory (ACT) follows closely behind with average earnings of $2,080, while New South Wales (NSW) comes in at $1,891. Victoria and South Australia have average earnings of $1,858.10 and $1,735 respectively. Tasmania has the lowest average earnings at $1,670.
The dominance of Western Australia in the mining sector is reflected in the high average weekly figure for workers, which stands at $2,952.
In terms of industries, those working in information, media, and telecommunications earn the highest average weekly wage at $2,406. They are followed by professionals in scientific and technical services who earn an average of $2,223. Finance and insurance professionals come in third with an average weekly wage of $2,182.70.
On the other end of the spectrum, people working in accommodation and food services are the lowest paid, earning an average of just $1,397 per week. Retail workers fare slightly better with an average weekly wage of $1,435.
It’s important to note that the average minimum wage in Australia is currently set at $23.23 per hour. Workers in Sydney retail stores can expect to earn around $25 per hour, while those working at McDonald’s across the country start at around $23.91 per hour.
The strong wage growth experienced in recent times is reflected in the Wage Price Index, which rose by 4.2 percent in the year to the December quarter of 2023. This is the highest annual increase in underlying wage growth since the March quarter of 2009, according to Bjorn Jarvis, the head of labour statistics at the ABS.
Both the public and private sectors experienced similar growth rates, with increases of 4.9 percent and 4.4 percent respectively. Public servants saw a boost in their earnings due to new enterprise agreements for essential workers like nurses.
In addition to wage growth, there has been a contraction in the gender pay gap. Women workers experienced a growth of 3.5 percent in average full-time earnings over the past six months, compared to 2.3 percent for men. The gender pay gap reached a record-low of 28.1 percent in the December quarter, down half a percent from May 2023. This marks the third consecutive quarterly drop.
However, it’s worth noting that the gender pay gap is maintained by women who make up a larger percentage of the part-time labor market compared to men. Around 30 percent of women work 20 hours or less per week, compared to just 11 percent of men.
Overall, the increase in wages and the reduction in the gender pay gap are positive indicators for Australian workers. With wages surpassing inflation and strong wage growth across various sectors, Australians can look forward to improved financial stability in the coming years.
