Australian workers have gone backwards in real terms over the past year, with wage growth failing to keep pace with inflation.
Australian Bureau of Statistics (ABS) data showed wages rose 0.8% in the June quarter, taking annual growth to 3.2%.
That remained below headline inflation, which increased 3.8% over the year to June, implying a 0.6% decline in real wages over the period.
“Annual wage growth of 3.2% is slightly down from 3.4% at the same time last year,” ABS head of price statistics Rachael McCririck said.
“Although we’re currently below the late 2023 peak of 4.3%, annual wage growth remains above the 2.2% that we were seeing in the December quarter 2019 prior to the COVID-19 pandemic.”
Public sector wages continued to grow faster than those in the private sector, rising 3.4% over the year compared with a 3.1% increase for private sector workers.