“Today’s wage price data shows that wages pressures on inflation and businesses are beginning to ease in Australia,” said Innes Willox, Chief Executive of the national employer association, the Australian Industry Group.
“Annual wages growth of 3.5% per annum in the September quarter, which demonstrates a clear and welcome slowing in wages growth, is a positive outcome.
“It will lower employment cost growth for businesses continuing to struggle with weak economic conditions, and take some of the heat out of pressures on underlying inflation.
“Much of this easing can be attributed to the relatively moderate increase in minimum and award wages handed down by the Fair Work Commission in June. The benefits of the Commission resisting the ACTU’s push for unsustainable, inflation driving wages growth is now starting to be seen.
“That said, while wages growth for both award and enterprise bargaining employees moderated materially in the quarter, they remain elevated relative to wages set in the market.
“The data also makes it clear that governments still need to get their house in order. Public sector wages rose at 3.7% per annum in the quarter. For the first time since the pandemic this wage growth is at a higher rate than in the private sector. Higher public sector wage outcomes only add unnecessary fuel to the lingering inflationary fire.
“Moderation in wages outcomes among government, unions and business will help reduce the inflation pressure which is bedevilling business and consumers.
“It is important that all parties combine to keep pumping the brakes on wages growth, especially without clear and demonstrable productivity offsets,” Mr Willox said.
