“The Wage Price Index released today by the ABS showed a pick-up in wages growth consistent with the recovery in the labour market,” Innes Willox, Chief Executive of the national employer association Ai Group, said today.
“The low wages growth in the past couple of years has certainly assisted in the recovery of jobs and the lower rates of unemployment and underemployment we are currently experiencing.
“As a result we have seen more jobs created and a significant increase in household incomes for people who otherwise would not have found a job or would not have been offered more hours of work.
“Wages growth has now recovered to pre-pandemic levels but remains moderate and this should assist in Australia making further progress towards full employment.
“While the annual increase in the Wage Price Index of 2.3 percent is below the current inflation rate, it is important to recall that the Wage Price Index does not include non-wage elements of remuneration such as employer contributions to superannuation.
“The 0.5 percent increase in the Superannuation Guarantee from 1 July last year is not included in the measure of wages growth and should be considered when comparing the difference between the change in the Wage Price Index and the most recent underlying inflation outcome of 2.6 percent,” Mr Willox said.
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