Australia’s wage price index rose a meager 0.5% in the September quarter and 2.7% since September 2012, which is the slowest year-on-year growth rate on record.
ABS data today put quarterly wage growth at the lowest level since the post-GFC lows of 2009. The market had expected a quarterly growth rate of 0.7% and annual growth rate of 2.9%.
The Australian economy is in transition and the labour market has been hurting, with the official unemployment rate holding at 5.7% last month and tipped to rise above 6.5% by 2014.
Westpac warned earlier this week that private sector wage inflation would continue to ease as the labour market softened: “We are now seeing the lagged effects of the soft labour market on wage negotiations; many enterprise agreements are negotiated for three years.”
Australia’s CPI rose 2.2% year-on-year in the September quarter.