Pete Wargent blogspot


'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Wednesday 14 November 2018

Wages growth hits 3½-year high

Gradual pick-up

It's a steady improvement for wages growth, then, with growth moving up to +2.3 per cent, the highest level in 3½ years.

Public sector wages growth of +2.47 per cent is still tracking better than the private sector at +2.14 per cent, mind you...although that gap has narrowed just a tad. 

The picture including bonuses was a shade brighter, with private sector wages including bonuses up by +2.8 per cent.

As anticipated, the recovery is being led by Victoria, with wages growth now up by +2½ per cent, while New South Wales wasn't too far behind at +2.4 per cent, and Tasmania did a little better still at +2.6 per cent. 

The resources jurisdictions are still dragging for now, however I do expect this is also set to change

The strongest gains were seen in the healthcare and social assistance sector at +2.8 per cent, with mining and retail trade still the laggards at +1.8 per cent (although this is now turning around for the mining industry). 

The wrap

Overall, it's been a long, slow haul for wages growth, but things are on the way back up from their nadir for Aussie pay packets. 

Key word: gradually.