Average weekly ordinary time earnings for full-time adults experienced a significant rise, marking the most robust annual growth in a decade, according to the latest ABS figures.
“The annual increase of 4.5%, or $81 a week, was the strongest since May 2013, other than a brief spike in average earnings early in the COVID-19 pandemic,” said Bjorn Jarvis (pictured above), ABS head of labour statistics.
The surge in average earnings is supported by an increase in the wage price index, which climbed by 4.2% in the year to the December quarter. This rate signifies the highest annual rise in underlying wage growth since the March quarter of 2009. Both the private sector, with a 4.4% rise, and the public sector, up by 4.9%, contributed to the growth.
The gender pay gap in average weekly ordinary full-time earnings also saw a reduction, narrowing, from 13% to 12% – the lowest level recorded.
“This was the third drop in the gender pay gap in a row, down to a new record low,” Jarvis said in a media release. “This narrowing in the gap reflected stronger growth in average full-time earnings for women, 3.5% over the past six months, compared with 2.3% for men. Annual growth was also more pronounced for women at 5.5%, compared with 4% for men.”
The disparity in average weekly earnings across regions and industries remains evident, with the highest wages reported in Western Australia ($2,108) and the Australian Capital Territory ($2,080). The lowest were recorded in Tasmania ($1,670) and South Australia ($1,735).
The mining industry continued to lead in average earnings, at $2,952 a week for full-time employees, while the accommodation and food services ($1,397) and retail trade industries ($1,435) lagged.
Average earnings for part-time employees also experienced significant growth, contributing to a 3.9% increase in average earnings for all employees in November 2023.
“The gender pay gap for all employees, including both full-time and part-time employees, is much larger than the full-time measure, with women more likely to work part-time,” Jarvis said. “That record-low gap was 28.1% in November 2023, down from 28.6% in May 2023.”
For more details, read Average Weekly Earnings, Australia, November 2023.
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