Markets

Australia posts another surge in full-time jobs, but unemployment ticked higher

Australian employment grew for a 17th consecutive month in February, extending the record set one month earlier. Despite solid employment growth, the unemployment rate rose to 5.6% thanks to more Australians actively seeking work. Labour market underemployment and underutilisation — broader measures of excess capacity within the labour market — […]
Australia posts another surge in full-time jobs, but unemployment ticked higher
Markets

Demand for workers has rarely been stronger in Australia

Australian employment increased by over 400,000 in the year to January. Jobs ads placed on Seek are currently 16.2% higher than they were a year ago, hinting that demand for workers is continuing to strengthen. Most sectors, along with every state and territory, recorded growth in job ads of more […]
Demand for workers has rarely been stronger in Australia
Markets

Your 10-second guide to today’s Australian jobs report

Australia’s February jobs report is about to be released. After creating over 400,000 jobs in 2017, the most in a calendar year on record, economists expect another solid increase to arrive today, continuing the form seen in January. Adding extra clout to the report, it will also contain quarterly underemployment […]
Your 10-second guide to today’s Australian jobs report
Markets

There’s plenty of jobs available right now in Australia

Australia created over 400,000 jobs in 2017, the largest over a calendar year on record. Job vacancies have risen to the highest level in over five years, suggesting that demand for workers is increasing. Openings have increased in most regions and professions over the past year. Job vacancies continue to […]
There’s plenty of jobs available right now in Australia
Markets

The RBA is uncertain and in no rush to move interest rates

  The minutes of the RBA’s March policy meeting offered very little new information for markets.   It remains optimistic about the Australian and global economy yet remains uncertain about the outlook for Australian household spending and wage growth.  Until that uncertainty is resolved, interest rates are likely to remain unchanged. […]
The RBA is uncertain and in no rush to move interest rates
Markets

Here’s an easy way to get a larger pay increase in Australia

Last year, Australian public sector wages increased by 2.44%, outpacing growth of 1.93% for private sector workers. Australian public sector wages have been growing significantly faster than private sector wages over the past two decades. Australian public sector employment grew by 7.6% in the year to November 2017, near triple […]
Here’s an easy way to get a larger pay increase in Australia
Markets

Australia’s record hiring spree may be about to ramp up even more

Australia added over 400,000 jobs in 2017, the largest increase over a calendar year on record. The employment index in the NAB’s monthly business survey jumped to the highest level on record in February, suggesting that strong hiring levels will likely continue. With strong levels of population growth, elevated hiring […]
Australia’s record hiring spree may be about to ramp up even more
Markets

Skill shortages are increasing in Australia

The RBA thinks Australian wage growth will pick up modestly in the period ahead, helping to boost economic activity and inflationary pressures. It says stronger labour market conditions should help to lower labour market underutilisation, pointing to recent reports of growing skill shortages being reported by firms. Recent liaison between […]
Skill shortages are increasing in Australia
Markets

It’s time to start hitting your boss up for a pay rise as skills shortages start to bite Australian manufacturers

Activity levels in Australia’s manufacturing sector have been improving for over a year Lead indicators suggest the positive momentum will likely continue in the months ahead Reports of skill shortages bode well on the outlook for wage growth Activity levels across Australia’s manufacturing sector continued to improve in February, continuing […]
It’s time to start hitting your boss up for a pay rise as skills shortages start to bite Australian manufacturers
Markets

Here’s what the average Australian earns in a week

Average pre-tax weekly earnings for Australian workers grew by 2.4% in the year to November Full-time workers in the ACT earn the most on average Average earnings for females are growing faster than for males If you ever wondered what the average Australian earns in a week, we have the […]
Here’s what the average Australian earns in a week
Markets

The industries with the fastest and slowest wage growth in Australia

It looks like Australian wage growth has turned the corner with the Australian Bureau of Statistics’ (ABS) wage price index lifting by 0.55% over the December quarter, leaving the increase on a year earlier at 2.08%. The annual rate was the fastest in two years, and above the record-low of […]
The industries with the fastest and slowest wage growth in Australia
Markets

Your 10-second guide to today’s key Australian wage report

Given the implications for inflationary pressures and interest rates, this reports is now arguably the most important data release in Australia. In the previous report, wage growth stalled despite an unusually large increase in Australia’s minimum wage rate at the start of June, raising concerns that wage pressures may not […]
Your 10-second guide to today’s key Australian wage report
Markets

The continued growth in Australian dividends, in one chart

Profits are growing at most Australian listed companies, and dividends are following suit, says Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital. “It’s still early days in the December half profit reporting season with only a third of companies having reported, but so far it remains […]
The continued growth in Australian dividends, in one chart
Markets

More women are working, and it could determine Australia’s economic fortunes

Australia created the most jobs ever recorded in 2017 but unemployment has remained somewhat unchanged. The reason is because an increasing number of Australians entered the labour market, mostly women. A senior economist says there’s evidence to suggest that these increased levels could help to boost household spending. The participation […]
More women are working, and it could determine Australia’s economic fortunes
Markets

Skill shortages are becoming more evident in Australia

Skill shortages are becoming more evident in Australia, at least according to the firms surveyed in the latest National Australia Bank’s (NAB) quarterly business survey. This chart shows the increase in the number of firms reporting difficulties finding suitably skilled staff in the latest survey, overlaid against Australia’s unemployment rate. […]
Skill shortages are becoming more evident in Australia
Markets

3 factors that could trigger a shock RBA rate cut

While no one is really sure when it will happen, almost every economist thinks the next move from the Reserve Bank of Australia (RBA) will be to lift official interest rates. Having reduced the cash rate to its current record-low level of 1.5% back in August 2016, most expect firmer […]
3 factors that could trigger a shock RBA rate cut
Markets

Wage growth in Australia is broken

Something is broken when it comes to wage growth in Australia. See, look: From Westpac, it shows the relationship between Australia’s labour market underutilisation rate — capturing unemployed and underemployed workers (primarily those in employment who would like to work more hours) — against annual hourly wage growth as measured […]
Wage growth in Australia is broken
Markets

Australian wages shock again

Australian wage growth has come in well below expectations, again. According to the Australian Bureau of Statistics (ABS), hourly wage growth excluding bonuses grew by 0.48% in the September quarter, missing forecasts for a larger increase of 0.7%. Annual wage growth also came up short, rising by 2.01%, below the […]
Australian wages shock again
Markets

Your 10-second guide to today’s key Australian wage report

Australia’s September quarter Wage Price Index (WPI) is about to be released. If you haven’t heard of it, you probably should. It’s arguably the most important data release in Australia right now, rivalling the likes of inflation, GDP, and the monthly jobs report. The reason for this is simple. The […]
Your 10-second guide to today’s key Australian wage report
Markets

Australian job ads lift again ahead of key wage data next week

Australian job advertisements rose strongly in October, more than reversing a 0.7% decline in September. According to ANZ, advertisements placed on Seek.com.au and the Department of Employment’s Australian site, Jobsearch.gov.au, rose by 1.4% to 169,577 in seasonally terms last month, leaving them 12.5% higher than a year earlier. David Plank, […]
Australian job ads lift again ahead of key wage data next week
Markets

Australian job vacancies are at record levels

Now here’s a bullish chart for anyone looking for a job in Australia. From the Commonwealth Bank, it shows that job vacancies hit the highest level on record in the three months to August. Record. High. According to the Australian Bureau of Statistics (ABS), vacancies jumped by 6% to 203,700 […]
Australian job vacancies are at record levels
Markets

Where salaries are rising fastest in Australia

Australia’s jobs market has been on fire in 2017, adding an impressive 319,000 jobs in the year to August. However, despite the recent surge in hiring — the strongest seen since the global financial crisis — wage growth remains stuck in the mud, particularly for private sector workers. According to […]
Where salaries are rising fastest in Australia
Markets

There’s a big problem with the RBA’s economic growth target

The Reserve Bank of Australia (RBA) thinks that Australian economic growth is going to accelerate sharply over the next couple of years, forecasting that it will lift to an above-trend pace of more than 3%, well above the 1.8% level seen in the year to June this year. Some think […]
There’s a big problem with the RBA’s economic growth target
Markets

It looks like Australian wage growth is about to turn the corner

Australian business conditions remain stronger than at any point since the global financial crisis, according to the latest National Australia Bank business survey. However, at the same time, consumer confidence, as measured by the ANZ-Roy Morgan weekly survey, remains stuck in the mud with concerns over the outlook for the […]
It looks like Australian wage growth is about to turn the corner
Markets

If you’re hoping for a pay rise in Australia, this chart is bad news

For a central bank that expects economic growth and inflation to accelerate as labour market conditions improve, the chart below must raise some concerns to the Reserve Bank of Australia (RBA). It shows the New South Wales Wage Price Index, a measure hourly wage rates for both private and public […]
If you’re hoping for a pay rise in Australia, this chart is bad news
Markets

It looks like wage growth in Australia has finally turned the corner

There are few more depressing charts in Australian than the one below, especially if you work the private sector. It shows annual growth in average hourly wages over the past two decades, revealing the near-constant deceleration in wage growth over the past six years. At 1.79%, private sector wages grew […]
It looks like wage growth in Australia has finally turned the corner
Markets

A pickup in Australian wage growth could be closer than many think

Australia’s jobs market is generating a lot of positive signals in 2017, creating optimism is some circles that wage growth will follow next. However, as workers in the United States, Japan and the United Kingdom can attest, strong labour market conditions do not automatically translate to a lift in wage […]
A pickup in Australian wage growth could be closer than many think
Markets

2 charts that show Australian wage growth and interest rates are going higher

Even 24 hours after its release, the minutes of the Reserve Bank of Australia’s (RBA) July monetary policy meeting continue to reverberate across Australian financial markets. The Australian dollar is above 79 cents, adding to yesterday’s 1.5% gain, while bonds remain under pressure, undermined by a growing expectation that the […]
2 charts that show Australian wage growth and interest rates are going higher
Markets

Here’s why Australia’s weak wages growth is such a problem

The December wage price index is out, and wages grew 1.87% in the quarter. Although results were in line with expectations, growth in the wages paid to Australian workers still remains subdued. This isn’t as much of a problem in the short term, but it could become troublesome looking out […]
Here’s why Australia’s weak wages growth is such a problem
Markets

Your 10-second guide to today’s Australian wage price index

Australia’s December quarter wage price index (WPI) is about to be released, a measure on changes in hourly wage and salary rates. After falling to the lowest level on record in the September quarter, economists expect a small pickup in wage inflation today, breaking the deceleration that’s been seen in […]
Your 10-second guide to today’s Australian wage price index
Markets

Australia, your days of struggling for a pay rise may be coming to an end

Of all the nation’s economic data releases, the Australian Bureau of Statistics’ (ABS) quarterly wage price index is perhaps the most depressing, at least in recent years. The last release in mid-November revealed that wages grew at the slowest pace on record in the the three months to September. Private […]
Australia, your days of struggling for a pay rise may be coming to an end
Markets

CHART: Australia’s wages bill grew much faster than employment last quarter

Australian wages grew strongly in the September quarter, according to the latest business indicators released by the Australian Bureau of Statistics on Monday. Total wages and salaries paid jumped by 1.2% last quarter, leaving the year-on-year increase at 2.9%. The acceleration, at odds with recent weak labour market data from […]
CHART: Australia’s wages bill grew much faster than employment last quarter
Markets

Australian wages grow at the slowest pace on record

Australia’s wages grew at the slowest pace on record in the three months to September. According to the ABS, wages, excluding bonuses, grew by 0.4% in seasonally adjusted terms, below the 0.5% increase expected. It was the lowest quarterly gain since the ABS survey first began in 1997. That means […]
Australian wages grow at the slowest pace on record
Markets

Your 10-second guide to today’s Australian wage price index

Later today the Australian Bureau of Statistics (ABS) will release its quarterly wage price index. While generally regarded as a second tier data release, it’s taken on increased significance this year given tepid inflationary pressures that exist within the Australian economy at present. With labour market conditions softening noticeably in […]
Your 10-second guide to today’s Australian wage price index
Markets

Australian wages growth holds steady, for a change

The Australian wage price index for the June quarter is out, and it’s a slight beat at +2.1% year-on-year. While the index remains at a record low, the market had been expecting growth to slow further to just +2.0%. So it has avoided a fall into further weakness, an outcome […]
Australian wages growth holds steady, for a change
Markets

Australian wage growth hits another record low

In an outcome that will do little to dispel the view that the Reserve Bank of Australia will follow up its May rate cut with another in the months ahead, Australian wage growth continued to slide in the first three months of the year, falling to the lowest level seen […]
Australian wage growth hits another record low
Markets

Your 10-second guide to today’s Australian wage price index release

Later this morning the Australian Bureau of Statistics (ABS) will release its March quarter wage price index, a report that measures the average change in wage and salary levels in Australia’s labour market. While not traditionally a market mover, let alone a household name, that all looks set to change […]
Your 10-second guide to today’s Australian wage price index release
Markets

Why falling inflation and interest rates mean your pay rise could be next

Australian workers have had little choice but to accept lower pay increases in recent years. Higher unemployment, increasing the number of available workers, along with disruptive technologies eroding the profitability of more traditional industries, have taken a toll on pay rises, culminating in Australia’s wage price index — a measure […]
Why falling inflation and interest rates mean your pay rise could be next
Markets

CHART: Weak inflation is terrible news for Australians hoping for a pay rise

This could well be the most depressing chart in Australia right now, at least for those expecting a hefty pay increase this year. Courtesy of ANZ’s economics team, it tracks the relationship between long-term inflation expectations from Australian businesses as part of the monthly NAB business survey against Australia’s wage […]
CHART: Weak inflation is terrible news for Australians hoping for a pay rise
Markets

Here’s why Australian workers pay rises could be even smaller in 2016

Australia created plenty of jobs last year. According to figures released by the ABS, employment increased by over 300,000 in the 12 months to December, the second largest calendar increase on record. Despite the strength in hiring, that failed to translate into similarly robust wages growth. Indeed, over the same […]
Here’s why Australian workers pay rises could be even smaller in 2016
Markets

Australian wage growth hits a record low

Australian wage growth fell to the lowest level on record last year. According to the ABS, wages grew by 0.5% in the December quarter after seasonal adjustments, leaving the annual rate at just 2.16%. The figure was below the 2.3% increase expected and was the lowest level seen since the […]
Australian wage growth hits a record low
Markets

ANZ: Low wage growth in Australia may be here to stay

Australia’s labour market – at least based on the official ABS data – had a barnstorming year in 2015. Employment surged by over 300,000, the second-largest annual increase since 2000, leaving the national unemployment rate at 5.76%, a level last seen in October 2013. Despite the stellar – but to […]
ANZ: Low wage growth in Australia may be here to stay
Markets

Your 10-second guide to today’s Australian wages report

Later this morning the Australian Bureau of Statistics (ABS) will release its quarterly wage price index, a report that tracks wage movements for public and private sector workers by industry and location. Here’s the state of play. In the 12 months to June wages grew by just 2.27%, down from […]
Your 10-second guide to today’s Australian wages report