Australian real wages remain deep underwater

The Australian Bureau of Statistics (ABS) released wage growth data for Q2 2025, which came in slightly above the Reserve Bank of Australia’s (RBA) forecasts outlined in its August Statement of Monetary Policy (SoMP):

Source: Alex Joiner (IFM Investors)

Nationally, wages increased by 0.8% in the second quarter, resulting in a year-on-year growth of 3.4%.

Wages in the private sector rose by 0.8% in Q2 to be 3.4% higher year-on-year, whereas public sector wages rose by 1.0% in Q2 to be 3.7% higher year-on-year:

Meanwhile, real wages are still tracking 6.0% below their Q2 2020 peak at around Q4 2011 levels:

It is a long way back for Australian workers, whose wages remain deep underwater.