Wages went up 1.3% in the September quarter
Wages in Australia grew 1.3% in the September quarter to mark the country's highest quarterly growth on record, according to data from the Australian Bureau of Statistics (ABS).
The annual wage growth was at four per cent - and is also the highest since the March quarter of 2009.
According to the ABS data, the private sector saw a quarterly increase of 1.4%, while the public sector saw a 0.9% hike.
Annually, the private sector logged a 4.2% increase in wages, the highest since the December quarter of 2008. The public sector also recorded a 3.5% increase, the highest since June 2011.
Michelle Marquardt, ABS head of prices statistics, said a "combination of factors" led to the widespread increases recorded during the quarter.
Drivers of growth
The private sector's growth was mainly driven by the 5.75% increase in the minimum wage approved by the Fair Work Commission early this year, lifting it from $21.38 to $23.23 an hour.
It was also affected by the application of the Aged Care Work Value case, labour market pressure, as well as CPI rises being considered into wage and salary review decisions, according to Marquardt.
"The public sector was affected by the removal of state wage caps and new enterprise agreements coming into effect following the finalisation of various bargaining rounds," she said in a statement.
The ABS added that the main driver of wage growth was jobs paid by individual arrangements. Award and enterprise agreement jobs also contributed more to wages growth than historically seen in a September quarter.
Welcome progress
A joint statement from the Treasurer Jim Chalmers and Employment Minister Tony Burke said they welcome the progress on wages this quarter.
"We'll continue to do what we can to deliver the kind of strong, sustainable wages growth that Australian workers need and deserve," they said.
However, they also acknowledged that Australians remain under pressure from the inflation and higher interest rates.
"That's why the Albanese Government's number one priority is dealing with the inflation challenge and providing cost-of-living relief," the officials said.
