Yesterday’s wage price data from the ABS was a bitter pill to swallow for those proclaiming a wage-price outbreak.
Aussie wage growth came in at a softer than expected 0.65% in the December quarter, to be up only 2.29% year-on-year. As Westpac notes, gains remain very narrow as well:
The 0.7% increase in private sector wages with the ABS noting that wage pressure continued to build for jobs with specific skills. Private sector wage growth occurred across a broad range of industries as businesses looked to retain experienced staff and attract new staff. Private sector wages are up 2.4% in the year, holding the pace it had in the September quarter 2021.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
