25th February 2021 | Business
The ABS figures also reveal the seasonally adjusted Wage Price Index (WPI) rose by 0.6 of a percentage point in December quarter 2020. The latest data showed a large proportion of the private sector wage growth came from the continued restoration of hourly wages back to pre-pandemic levels, following reductions in the June or September quarters of 2020. The largest quarterly rise was in the professional, scientific and technical services industry (1.2 per cent) after wage reductions contributed to a significant fall in June (-0.5 of a percentage point). Annual wage growth to the December quarter 2020 ranged from 0.3 of a percentage point for the accommodation and food services industry to 2.4 per cent for the education and training industry, the ABS said. Victoria recorded the highest quarterly rise (0.7 of a percentage point) after wage reductions contributed to a 0.1 of a percentage point fall in June and minimal wage growth in September (0.2 of a percentage point). The Northern Territory also recorded a quarterly rise of 0.7 of a percentage point based mainly on regular public sector wage growth. The WPI measures the change in hourly wages and salaries paid, with wage subsidies such as JobKeeper and payroll tax changes falling outside the conceptual scope of the survey.
“December quarter’s moderate growth was influenced by businesses rolling back short-term wage reductions, returning wages to pre-COVID levels. The phased implementation of the Fair Work Commission annual wage review also had a small positive impact on wages,” said ABS head of prices statistics Michelle Marquardt.
“In original terms, wages rose by 0.5 [of a percentage point] in December quarter 2020. Private sector wages rose by 0.5 [of a percentage point], outpacing the public sector rise of 0.3 [of a percentage point].
“Wage freezes have had an impact on the public sector, which recorded its lowest annual increase (1.6 per cent) since the commencement of the series.”
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