Australia Q1 Wage Growth Matches Forecasts

2026-05-13 01:37 By Chusnul Chotimah 1 min. read

Australia’s seasonally adjusted Wage Price Index increased 3.3% year-on-year in Q1 2025, easing from a 3.4% rise in the previous quarter and in line with market expectations.

A slight slowdown was driven by softer gains across both sectors, with private-sector wages advancing 3.2% (vs 3.4% in Q4), the lowest since Q2 2022, and public-sector pay increasing 3.3% (vs 4.0%), the weakest increase since Q4 2024.

On a quarterly basis, wages grew 0.8%, unchanged from the prior period and in line with market expectations.

In original terms, electricity, gas, water & waste services recorded the highest quarterly rise at 1.1%.

Conversely, retail, accommodation and food services & information, media, and telecommunication industries registered the weakest quarterly increases at 0.1%.

On an annual basis, electricity, gas, water, and waste services led all industries with a 4.3% growth, while administrative and support services saw the slowest through-the-year growth at 2.8%.



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Australia Q1 Wage Growth Matches Forecasts
Australia’s seasonally adjusted Wage Price Index increased 3.3% year-on-year in Q1 2025, easing from a 3.4% rise in the previous quarter and in line with market expectations. A slight slowdown was driven by softer gains across both sectors, with private-sector wages advancing 3.2% (vs 3.4% in Q4), the lowest since Q2 2022, and public-sector pay increasing 3.3% (vs 4.0%), the weakest increase since Q4 2024. On a quarterly basis, wages grew 0.8%, unchanged from the prior period and in line with market expectations. In original terms, electricity, gas, water & waste services recorded the highest quarterly rise at 1.1%. Conversely, retail, accommodation and food services & information, media, and telecommunication industries registered the weakest quarterly increases at 0.1%. On an annual basis, electricity, gas, water, and waste services led all industries with a 4.3% growth, while administrative and support services saw the slowest through-the-year growth at 2.8%.
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