Wage Price Index – June Quarter 2013

• The WPI rose by 0.7% in QII and 2.9% in annual (sa) terms.
• Private sector wages are growing at 2.9%pa and public at 2.8%pa.
• Wages growth is slowing and is well below its 10-year average of 3.8%.
• The moderation in wages growth, in line with the lift in the unemployment rate, supports the RBA’s mild easing bias.

Today’s 0.7% rise in the QII Wages Price Index (WPI) was right in line market expectations {CBA (f) 0.8%}. Annual wages growth eased to 2.9% from 3.2% in QI 2013. Both private and public sector wages growth slowed. Behind the national outcome is a narrowing in the divergence in sector outcomes.

Across the industry groups the highest wages growth was in utilities at just under 4%pa while the lowest was in education at 2.5%. The range is less than a few years ago when strong mining sector outcomes were prevalent. Across the States there has also been a compression, with the highest wages growth still in WA at 3.4%pa and the lowest in NSW and Queensland at 2.8%.

Read the full report: Market Research


Commonwealth Bank

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