A slight beat for the y/y result while the q/q is in line. At +1.3% the q/q is the strongest quarterly growth rate in this data series' 26-year history
- private sector wages +1.4% q/q
- public sector +0.9%
The Reserve Bank of Australia (RBA) anticipated that aggregate wage growth would continue to pick up over the course of 2023. The growth in the WPI was forecasted to peak at around 4.25% towards the end of this year. Further ahead the Bank expects that as economic growth slows, labour market conditions are expected to ease slightly, potentially leading to a modest slowdown in wage growth.
AUD little changed after the data, circa 0.6490 as I update.
The Wage Price Index (WPI) is designed to measure the rate of change in wages, excluding bonuses. It's used to understand wage trends and inflationary pressures in the labor market.
- tracks changes in wage rates over time for a set quantity and quality of labor. This is done by selecting a sample of jobs and measuring the changes in wages paid for the same work done at the same standard.
- covers a broad range of industries and occupations across the Australian economy, providing a comprehensive view of wage trends.
- it's distinct from other measures like average weekly earnings, which can be influenced by changes in the composition of the workforce and hours worked.