Australia Wage Growth Meets Market Forecasts

Australia’s seasonally adjusted Wage Price Index rose by 3.4% year-on-year in Q3 2025, unchanged from the previous quarter and in line with market expectations. Public sector wages increased by 3.8%, slightly above the 3.7% rise in Q2, while private sector wages grew by 3.2%, easing from 3.4% previously. In original terms, the electricity, gas, water & waste services industry and public administration recorded the strongest annual wage gains at 4.3% each. They were followed by healthcare and social assistance (3.8%), mining (3.6%), education and training (3.6%), construction (3.4%), rental, hiring, and real estate services (3.3%), and professional, scientific & technical services (3.3%). Healthcare and social assistance roles were the main contributors to quarterly wage growth. On a quarterly basis, overall wage prices rose by 0.8%, matching the previous quarter and aligning with market forecasts.

Australia's seasonally adjusted Wage Price Index rose by 3.4% yoy in Q2 2025, matching the previous quarter's pace and exceeding expectations of a 3.3% increase. An acceleration in both the public and private sectors drove the stronger-than-expected growth. Public sector wages surged by 4.7%, up from 3.6% in Q1, while private sector wages rose by 3.4%, compared to 3.3% previously. This marks a rebound for the private sector, which had recorded its weakest growth since Q2 2022 in the prior two quarters. In original terms, the electricity, gas, water, and waste services industry recorded the highest annual wage increase at 5.0%, followed by information media & telecommunications and healthcare & social assistance, which both rose by 3.9%. The main contributors to the quarterly wage growth were roles in professional, scientific, and technical services. On a quarterly basis, wage prices increased by 0.8%, down from a 0.9% gain in the previous quarter and in line with market forecasts.

Australia's seasonally adjusted Wage Price Index rose by 3.4% year-over-year in Q1 2025, up from a 3.2% increase in Q4 2024 and above market expectations of a 3.2% gain. The latest figure marked a rebound from the previous quarter, which recorded the weakest wage growth since Q3 2022. The acceleration was driven by stronger wage growth in the public sector (3.6% vs 2.9% in Q4 2024), while private sector wage growth held steady at 3.3%—the lowest since Q2 2022. In original terms, the electricity, gas, water, and waste services industry posted the highest annual increase (4.4%), followed by education & training (3.8%) and healthcare & social assistance (3.8%). The main industry contributors to the quarterly rise were roles in healthcare and education & training. On a quarterly basis, wage prices climbed 0.9%, up from a 0.7% gain in the previous quarter and ahead of forecasts for a 0.8% increase.