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2w ago

Australian Wage Growth Surprises with 3.4% Annual Increase

Public sector agreements and care industry pay rises drive the sixth consecutive quarter of real wage growth, aligning with RBA forecasts.

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A view of the Sydney Opera House and Central Business District (CBD) skyline in Sydney, Australia, March 12, 2025. REUTERS/Hollie Adams/File Photo
Aussie workers’ wages are rising, albeit slightly. NewsWire / Andrew Henshaw
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Overview

  • Wages rose 3.4% year-on-year to March 2025, exceeding analyst predictions of 3.2%, with a quarterly increase of 0.9%.
  • Real wages grew by 1% as inflation settled at 2.4%, marking the sixth straight quarter of real annual wage gains.
  • Public sector wages saw a 3.6% annual increase, outpacing private sector growth, which remained steady at 3.3%.
  • Pay rises for childcare and aged care workers, along with enterprise agreements, accounted for over half of the quarterly growth.
  • The Reserve Bank of Australia’s February forecast of accelerating wage growth was met, with labor market tightness now a key focus for future monetary policy decisions.