Australia records 0.6% wage growth for 2020 December quarter

Australia has recorded a wage growth of 0.6% for the December quarter in 2020, with the uplift attributed to a reverse in salary cuts by businesses as a means to survive due to the economic uncertainty caused by the pandemic.

“December quarter’s moderate growth was influenced by businesses rolling back short-term wage reductions, returning wages to pre-COVID levels,” said Michelle Marquardt, Head of Prices Statistics at the Australian Bureau of Statistics (ABS).

“The phased implementation of the Fair Work Commission annual wage review also had a small positive impact on wages,” added Marquardt.

In annual terms, wages rose by 1.4%, with private sector wage growth outpacing public sector wages. Wage freezes impacted wages in the public sector, which recorded its lowest annual increase of 1.6%, according to ABS.

A large proportion of private sector wage growth stemmed from the continued restoration of hourly wages back to pre-pandemic levels, following pay cuts in the June or September quarters last year. 

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Industry-wise, the professional, scientific and technical services industry recorded the largest quarterly rise of 1.2%, after wage reductions contributed to a significant fall of -0.5% in the June quarter.