Wage growth remains at record lows

Updated

Official figures show wage growth remaining at a historic low in the September quarter.

The Bureau of Statistics data shows the annual pace of wage growth remained at 2.6 per cent for the second straight quarter, as expected.

The index peaked over 4 per cent shortly before the financial crisis and has been on a downhill trajectory ever since, now running at its lowest level since the records started in 1997.

The Federal Government's belt tightening has hit public sector wages.

Annual public sector wage growth slowed to 2.7 per cent, which is well below the high of 3.3 per cent reached in June last year.

Wage growth in the ACT also dropped to a national low of 1.7 per cent as many Commonwealth departments pushed for wage restraint.

The state breakdowns show workers in the mining sector are also seeing big pay cuts.

Western Australia's annual rate of wage growth dropped to 2.2 per cent.

The weak wage growth overall is not good news for households or retailers, when combined with poor employment growth and Citi's Joshua Williamson sees little chance of a turnaround.

"With many firms still in the process of cost containment and the unemployment rate about a percentage point above the level that existed when wages growth was stronger, there is little to suggest that wages growth will accelerate back to trend in the near term," he said.

Topics: economic-trends, work, mining-industry, public-sector, australia

First posted