Australian wages underperform despite tight labor market
CANBERRA, AUSTRALIA — Australia’s June quarter wage growth undershot expectations, registering a 0.8% increase over the last three months and 3.6% annually.
This quarter’s figures fell short of the previous quarter’s 3.7% increase. The reported wage figures also temporarily impacted the Australian dollar as market players recalibrated their interest rate outlooks.
Australia’s Treasurer Jim Chalmers and Employment Minister Tony Burke highlighted that wages have averaged 3.6% growth under their administration, in contrast to the preceding rate of 2.1%.
Despite having the lowest unemployment rate in five decades, David Bassanese, Betashares’ chief economist, remarked on the modest overall wage growth in the country, downplaying the need for major unemployment rate tweaks in the near future.
Australian Bureau of Statistics’s Michelle Marquardt noted that the current cost of living influenced the potential wage pressures. The data also showed the private sector experienced a 0.8% wage surge this quarter, whereas the public sector saw a 0.7% increment.
Looking forward, Australia and New Zealand Banking Group Limited (ANZ) Economist Adam Boyton anticipates a considerable wage hike next quarter following adjustments to minimum wages.
Conversely, Commonwealth Bank of Australia’s (CBA) Steven Wu perceives the recent wage statistics as indicative of a more relaxed labor market.
