Wed, 30 Sep 2020

Australia's wage growth slumps to worst in 23 years

Xinhua
12 Aug 2020, 16:18 GMT+10

SYDNEY, Aug. 12 (Xinhua) -- Australia's wage growth slumped to its lowest level in 23 years, with some industries suffering significant pay cuts in the face of the COVID-19 pandemic.

The Australian Bureau of Statistics (ABS) revealed on Wednesday that the national Wage Price Index (WPI) rose by just 0.2 percent in the June financial quarter, for an overall 1.8 percent increase over 12 months.

Both figures are the lowest since the ABS started recording in 1997.

"The June 2020 quarter was the first full period in which COVID-19 social and business restrictions were captured in the WPI," head of Price Statistics at the ABS, Andrew Tomadini explained.

Modest wage growth in the June quarter was largely confined to the public sector which saw a 0.6 percent lift, compared with 0.1 percent in the private sector as businesses adjusted to COVID-19.

"The fall in private sector wages is mainly due to a number of large wage reductions across senior executive and higher paid jobs," Tomadini said.

At an industry level, scientific and technical services, construction and real estate services saw the highest proportions of wage reductions.

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