Aussie wage growth collapses to new low

The Australian Bureau of Statistics (ABS) has just released its Labor Price Index for the September quarter of 2020, which reveals that wage growth has plunged to fresh lows:

According to the ABS, wages grew by just 0.07% in the September quarter. Private sector wages grew by only 0.08% over the quarter, whereas public sector wages grew by 0.22%.

Over the year, total wages grew by just 1.36%, with the private sector experiencing just 1.21% growth and public sector wages growing by 1.77%.

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 weak everywhere, but is strongest in SA (1.8%) and weakest in VIC (1.2%):

In a similar vein, wages growth is weak across most industries, with Financial Services (+2.4%) strongest and Real Estate Services (+0.6%) weakest:

Wage growth will obviously remain weak as mass unemployment remains across the economy. Rebooting mass immigration will only make the situation worse.

Unconventional Economist

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