Yesterday’s labour price index for the September quarter, released by the ABS, confirmed that the public sector is driving wage growth across the Australian economy:
As shown above, public sector wages grew by 2.5% in the year to September, versus a 2.2% increase across the private sector.
This continues a long-running trend, with real public sector wages growing by 14.9% since June 2002, versus growth of only 8.3% across the private sector:
The lion’s share of recent wage growth has been driven by the Healthcare & Social Assistance sector, where wages surged by 3.2% in the year to September, dwarfing the wage growth experienced across all other industries:
Much of this increase can be attributed to the ongoing rollout of the $22 billion a year National Disability Insurance Scheme.
As we already know, the Healthcare & Social Assistance sector has already been by far the biggest jobs driver since the Global Financial Crisis in 2008:
And the Department of Employment projects this to remain the case over the next five years:
Clearly, Australia’s bedpan economy has become a ward of the state, heavily reliant on the Australian taxpayer to deliver both jobs and wage growth.
It’s the economy you have when you don’t have an economy.