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Australia's Wage Growth Outpaces Inflation: A Positive Outlook
2024-08-13 05:50:08
Economy
Business

Australia's Wage Growth Outpaces Inflation: A Positive Outlook

Australian wages grew 4.1% annually, surpassing the 3.8% inflation rate. In Q2, private sector wages increased by 0.7% and public sector wages by 0.9%.

Two-thirds of workers experienced over 3% annual wage growth. This marks the first time in three years that wage growth has outpaced inflation, as reported by the ABS Wage Price Index and CPI data.

Public sector wages rose at the second-fastest pace in 14 years, with synchronized pay raises benefiting public service employees. Australian business conditions improved in July, indicating a positive economic outlook with easing cost pressures.

Consumer sentiment brightened in August as tax cuts and reduced rate fears boosted family finances.

Related news on that topic:

Australia's Wages Rise Slowest in a Year

Australian wages rose 0.8% in Q2, the slowest in a year and below market forecast. Annual growth stands at 4.1%, with the private sector at its lowest since 2021. The RBA policy remains steady at 4.35%, expecting inflation to return to 2-3% by 2025. Oxford Economics notes that wage growth is still too strong for a quick inflation return. However, incomes are boosted by major tax cuts implemented in July. The jobless rate ticked up and productivity growth is lacking. Underlying inflation stood at 3.9% last quarter. Some economists are anticipating a rate cut early next year, while markets are now wagering on easing by year-end.

UK Unemployment Falls Unexpectedly as Wage Growth Slows

UK unemployment rate unexpectedly falls to 4.2% in July, with employment rising strongly. However, wage growth cools to a two-year low at 5.4%. The Bank of England expresses concern over persistent wage pressures. The Office for National Statistics delays the release of new survey figures. The decrease in unemployment is contrary to economist forecasts and Reuters predictions. The decline in vacancies suggests a return to pre-pandemic job market conditions. The finance and business services sector sees the highest wage growth at 6.2%, while the construction sector has the lowest at 3.5%. Chancellor Rachel Reeves plans to deliver her first budget on October 30th. Data is distorted by one-off NHS bonus payments in June 2023. The workforce is described as older, remote, and mentally challenged. Analysts are divided on the impact on interest rates, with some expecting further cuts.

Read 1 more recent news on this topic

The press radar on this topic:

Yahoo!
13. August 2024 um 01:37

Australia business conditions bounce in July, cost pressures easing

Economy
Finance
Australian business conditions improved in July, per a NAB survey, with a rebound in employment and easing cost pressures. Inflation in product prices held at 0.7%, purchase costs grew 1.1% - not far from pre-COVID, and labor costs jumped to 2.5%. The conditions measure was slightly below its long-run average, while the RBA held rates steady, expecting the economy to grow more quickly in the second half of the year.
Yahoo!
13. August 2024 um 00:34

Australia consumers brighten up as rate fears ease, tax cuts kick in

Economy
Finance
Politics
Australian consumer sentiment rose in August by 2.8% as rate fears eased and family finances outlook improved due to tax cuts. The index reading of 85 showed pessimists far outnumbered optimists. Family finances measure jumped 11.7%, most strong among low-income earners.
SBS News
13. August 2024 um 02:51

Wage rises in Australia have surpassed inflation. Is that good news?

Economy
Finance
Wages grew 4.1% annually, beating 3.8% inflation. Private sector rose 0.7% and public 0.9% in Q2. Two-thirds saw over 3% annual growth. Wage growth outpaced inflation for first time in 3 years, per ABS Wage Price Index and CPI reports.
The Guardian
13. August 2024 um 04:22

Public sector wages increase at second fastest pace in 14 years, ABS data shows

Economy
Finance
Politics
Public sector wages rose 0.9% in Q2, the second-fastest pace in 14 years, driven by synchronized pay increases for public service employees effective March 2024. Private sector wages rose just 0.7%, the equal-lowest since late 2021. Overall, the wage price index grew 4.1% annually, slightly ahead of headline inflation. Government spending is forecast to grow 4.3% by year-end, up from 1.5%, with strongest wage pressures in health, education and public sectors. Wage increases for childcare, aged..
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