The pincer movement of higher inflation and lower wage growth now means that average wages are falling in real terms, especially for employees in the private sector where wage growth is anemic. Not good for those with mortgages as rates rise flow though.
The ABS says the seasonally adjusted Wage Price Index (WPI) rose 0.5 per cent in March quarter 2017 and 1.9 per cent over the year, according to figures released today by the Australian Bureau of Statistics (ABS).
The WPI, seasonally adjusted, has recorded quarterly wages growth in the range of 0.4 to 0.6 per cent for the last 12 quarters (from June quarter 2014).
In original terms, through the year wage growth to the March quarter 2017 ranged from 0.6 per cent for the mining industry to 2.3 per cent for public administration and safety, education and training, and health care and social assistance industries.
Western Australia recorded the lowest through the year wage growth of 1.2 per cent and Tasmania the highest of 2.3 per cent.