It’s unprecedented, via Westpac:
The chart pack takes a more detailed look at what is going on in wages and how wages interact with the various labour market indicators. Key highlights are:
- Wages are lagging not just employment, hours worked and unemployment but also underutilisation and even unemployment expectations.
- Only broad sector with any modest upswing in wages is household services on the back of stronger public sector wage gains.
- The gains in the household sector have been larger in Victoria with a particular focus on health and education.
- There has been an improvement in mining and manufacturing wage gains but this is off a low base.
- While unemployment and even unemployment expectations are falling business are yet to find it difficult to recruit labour.
- WA wages have the tightest relationship with the labour market indicators but it the fact the state with the highest rate of population and employment growth (Victoria) also has the highest rate of wages growth even if it’s unemployment (and even underemployment rate) is higher than what it is in NSW.
- NSW is the clear laggard when it comes to wage inflation with an exception in that state being the construction sector.
