Doctor, doctor...
Wages growth came in a shade stronger than expected in the December quarter at 0.95 per cent for the 3-month period.
Over the year, wages growth was slightly higher than expected at +4.2 per cent, although we'll be fairly inevitably be heading back down towards 3 per cent over the year ahead.
In the 2023 calendar year wages growth was led by Queensland (+4.8 per cent) and Western Australia (+4.7 per cent).
Most of the other states and territories saw a +4.3 per cent increase, with Victoria bringing up the rear at +3.7 per cent.
Public sector boost
The slightly better than expected result was due to a +1.3 per cent increase in public sector wages in the December quarter, in particular the large pay rise for teachers (education +1.7 per cent), some of which hit in the final months of the calendar year.
Year-on-year healthcare wages increased by an impressive +5.5 per cent, according to the ABS.
Over the past year public sector wages growth (+4.28 per cent) thus outpaced private sector wages growth (+4.21 per cent).
Since the peak of the resources construction boom in 2012, private sector wages have mean-reverted lower, while public sector wages growth have increased more quickly (we also saw a huge rush of immigration over the past 15 years, which have contributed to depressing wages).
Since the start of the data series in 1997 private sector wages have increased by +120 per cent, versus +133 per cent for public sector wages growth.
Overall, this was a marginally stronger than expected result, albeit hardly a market mover.
For the first time in a while wages growth of +4.2 per cent was a bit higher than the rate of inflation.
James Foster ran through the key details
here, suggesting that wages growth may well have topped out for this cycle.
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