Australia Q2 Annual Wage Growth Remains at 5-Quarter Low

Australia’s seasonally adjusted Wage Price Index increased 3.2% year-on-year in Q2 2026, unchanged from the revised figure in Q1 and matching market expectations. It was the weakest growth since Q4 2024, with private-sector wages advancing 3.1% (vs 3.2% in Q1), the lowest since Q2 2022, and public-sector pay increasing 3.4% (vs 3.4%), the weakest increase since Q4 2024. On a quarterly basis, wages grew 0.8%, unchanged from the previous four quarters and in line with market expectations. In original terms, information media and telecommunications recorded the highest quarterly rise at 1.2%. By contrast, retail trade and other services registered the lowest quarterly increase at 0.1%. On an annual basis, health care and social assistance saw the highest growth, with a 3.8% gain, while professional, scientific and technical services posted the softest expansion at 2.5%.

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%.

Australia’s seasonally adjusted Wage Price Index rose 3.4% year-on-year in Q4 2025, slightly accelerating from a marginally revised 3.3% increase in the previous quarter. The uptick was driven by steady gains across both sectors, with private-sector wages rising 3.4% (vs. 3.3% in Q3) and public-sector pay increasing 4.0% (vs. 3.9%). Quarterly, wages grew 0.8%, unchanged from the prior period and in line with market expectations. In original terms, information, media and telecommunications posted the strongest quarterly wage growth at 1.2%. In contrast, administrative and support services and accommodation and food services recorded the weakest quarterly increases, both at 0.3%. On an annual basis, health care and social assistance led all industries with a 4.4% rise, while financial and insurance services saw the slowest through-the-year growth at 2.7%.