Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 27 February 2016

End of mining boom clonks weekly earnings

The ABS released its Average Weekly Earnings figures for the period ended November 2015 this week, and the impact of the end of the mining construction boom was visible throughout the data.

On the plus side mining construction won't continue to fall forever, as I looked at earlier in the week. 

However, this won't be much consolation for those regions which have been impacted most severely.

Average weekly full time earnings for all workers rose by +1.7 per cent over the year, and average earnings for all workers by +1.5 per cent. 

Growth in male earnings was particularly weak over the year to November 2015, reflecting the mining malaise. 

On other hand, average weekly earnings for femaled increased much more strongly, up by +2.9 per cent.

It is difficult to read too much into these figures, since they can be skewed by changes in composition of the workforce.

With a smattering of luck, they might imply that the non-mining economy is tracking a fair way better than the mining economy.

Certainly the state level figures suggest this, with full-time earnings softening in Western Australia and Queensland, two of the states most impacted by the mining slowdown.

Overall a soft set of numbers, with average earnings rising only steadily, although some way ahead of the cost of living increase for employee households, which increased by only +1.1 per cent in calendar year 2015.