Wages growth rises to 2.4%

Businesses gave their employees an average wage rise of 2.4% in the year to March, according to the latest data from the Australian Bureau of Statistics.

Wages growth has now increased for five consecutive quarters, albeit from a very low base:

· December 2020 = 1.4%

· March 2021 = 1.5%

· June 2021 = 1.7%

· September 2021 = 2.2%

· December 2021 = 2.3%

· March 2022 = 2.4%

With the job market continuing to strengthen (see next story), wages are expected to keep rising, according to the minutes of the Reserve Bank’s June monetary policy meeting.

"Information from the bank's liaison program continued to indicate that wages growth would increase from the low rates of recent years as firms compete for staff in a tight labour market."