The release of recent ABS data has shown that private sector pay growth has remained at a record low for the year to June, again outstripped by inflation.
The bureau’s Wage Price Index shows private sector hourly rates of pay (excluding bonuses) grew by just 2.5% in the year to the June quarter. In trend terms it was just 0.6% in the three months.
This is lower than the CPI for the year, which ran at 3.0%; although in the three months to June 30 wages outpaced prices growth, which was 0.5%. It is important keep these figures in mind as contribute to any end of year pay adjustments.
Growth in public sector rates of pay (excluding bonuses) was, as expected, higher than the private sector. It increased by 3% in trend terms in the year to June, and 0.8% for the quarter.
The economy-wide figure for private and public sector growth combined remained at a record low 2.6%.