The Australian Bureau of Statistics (ABS) has just released its Labor Price Index for the June quarter of 2019, which revealed more disappointing wages growth:
According to the ABS, wages grew by just 0.61% (s.a.) and 0.53% (trend) in the June quarter. Private sector wages grew by 0.54% (both s.a. and trend) over the quarter, whereas public sector wages grew by 0.82% (s.a. ) and 0.60% (trend).
Over the year, total wages grew by just 2.58% (s.a.) and 2.33% (trend), with the private sector experiencing just 2.26% (both s.a. and trend) growth and public sector wages growing by 2.58% (s.a.) and 2.50% (trend) growth.
You can see from the next chart, which plots non-seasonally adjusted wages growth on an annual basis (in order to reduce volatility), that wages growth is soft everywhere, but is strongest in VIC (2.9%) and weakest in WA (1.6%):
In a similar vein, wages growth is weak across most industries, with the exception of Healthcare (+3.3%):
Wages growth has fallen well below the 2019 Federal Budget forecast, which also predicts a wages explosion over coming years:
With the key economic growth drivers weakening, mass immigration ongoing, and the labour market softening, wage growth will continue to disappoint.