The wages of the average Australian worker increased 0.8% in the March quarter, taking annual wages growth to 4.1%, according to the Australian Bureau of Statistics.
The industries with the biggest annual increases in wages were:
Strong wages growth is both causing and affecting the country’s elevated inflation rate: higher wages are contributing to higher prices, which are prompting workers to seek higher wages.
The Reserve Bank, in a statement released after its most recent monetary policy decision, said excess demand in the economy was putting upward pressure on wages.
“Conditions in the labour market have eased over the past year, but remain tighter than is consistent with sustained full employment and inflation at target. Wages growth appears to have peaked but is still above the level that can be sustained given trend productivity growth,” the Reserve Bank said.