Strong gains in private sector wages continue

Businesses are delivering the strongest rate of wages growth in more than decade, with the private sector wages bill rising by 3.6 per cent in 2022.

“Annual private sector labour cost growth has increased to levels not seen since the 2007 mining boom,” ACCI chief executive Andrew McKellar said.

“While wage outcomes in the December quarter did not match that of the September quarter, growth was still strong. There is no sign that robust wages growth is easing anytime soon.

“Business is leading the way with private sector wages up 3.6 per cent in 2022 compared to just 2.5 per cent in the public sector. Higher wages growth is being experienced across the board with all sectors recording a rise of more than 0.6 per cent in the December quarter.

“Sectors experiencing the most crippling workforce shortages, such as accommodation and food services, experienced the highest quarterly increase in wages growth.

“Employers continue to see significant pressure on wages, and can expect further wage increases in the year ahead. Enduring labour shortages mean businesses are working to recruit and retain staff though regular and ad hoc wage reviews, bonuses, promotions, and other incentives.

“With responsible nominal wages growth outcomes being achieved, further effort is now needed to reduce inflationary pressures and supply chain constraints.”

/Public Release. View in full here.