The bank, which signalled it could cut interest rates to new record lows if the jobless rate does not fall below its current 5 per cent, also noted in its Statement on Monetary Policy last Friday that wage growth would continue to be "gradual".

"It is likely that the labour market still has some capacity to absorb additional labour demand before anything more than gradual upward pressure is generated for wage and price inflation."

UBS economist George Tharenou said not even "gradual" wage growth should be counted upon anymore.

"Despite decade-low unemployment, wages are arguably no longer gradually trending up."

But Commonwealth Bank senior economist Gareth Aird argued that "the detail was a little more encouraging than the headline numbers".

"Private sector salaries are trending higher from a trough in the second quarter of 2017 of 1.8 per cent to 2.4 per cent in the first quarter of 2019."

The private sector's quarterly rise of 0.5 per cent in the March quarter also exceeded that of the public sector in seasonally adjusted terms.


ABS chief economist Bruce Hockman noted that the electricity, gas, water and waste services industry recorded the highest quarterly rise of 1 per cent, but that the main contributors to growth were the regularly scheduled wage rises in the healthcare and education.

Both sides of politics used the numbers to push their economic arguments.

"In real terms after taking into account inflation, wages are growing at nearly twice the historical average," Treasurer Josh Frydenberg said. "We want wages to go up further, but the key to lifting wages is lowering taxes not increasing them."

Shadow treasurer Chris Bowen said the numbers were "very disappointing figures yet again".

"The government just oppose every plan that we come up with to get wages growth going."

The opposition is seeking to boost the minimum wage to a "living wage" should it win the election on Saturday. It is also promising a tax break worth up to $50,000 a year for small businesses to hire younger and older workers.

The latest NAB Business survey showed this week its first below-average employment figures since 2016.

While NAB’s survey showed that firms’ hiring intentions are still elevated, expectations for the next three and 12 months have eased.