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Australian public sector wage growth hits ATH

Jomar Teves Aug 16, 2023

2 min read

Crisis over-crisis events have occurred all over the world; with many nations still recovering from the damages caused by COVID-19 and the recent crisis in Europe, many levels of human living have been critically affected.

One of the heavily affected is the economic and financial systems of many countries, especially in third world nations that were already struggling before said crisis events took place. But some countries have begun to recover and even surpass their economic and financial state before the crisis. A major example of this is Australia, with it recently experiencing a major income growth for its public servant.

Australian public sector wage growth

According to the Australian Bureau of Statistics, the wage price index has recently experienced an 0.8% growth in this year’s quarter. This is also in contrast to the consumer price index, which measures the cost of living, which grew by 0.8% in the recent quarter.

According to the ABS head of prices statistics, Michelle Marquardt, “Wage rises from regular June-quarter salary reviews were higher than in the same period last year, as recent cost-of-living and labour market pressures were incorporated into organization-wide decisions on wages.”

Additionally, Treasure Jim Chalmers stated that Australia was already experiencing significant wage growth because it was a key goal of the Labour Party’s economic plan to get wages moving again. Said growth has been caused by taking a different approach to wage growth this Labor government has used, which has led to the party’s development compared to its predecessors.

In contrast, Shadow Treasurer Angus Taylor stated that real wages have been going downward since the Labor Party took a seat in the government in 2022. The Australian government must control spending and support economic growth to counter such a direction.

Other wage rises

According to EY senior economist Paula Gadsby, these growths have been caused by inflation easing more than expected in the June quarter, with consumption slowing significantly and improved labour availability. However, concerns regarding low productivity growth and high unit labour costs could reoccur.

In conclusion, despite the numerous crisis that is occurring and about to occur has critically affected many, The Australian government has rather been a steady yet slow growth in terms of its wages for public servant and the private sector. This growth has been caused by factors that have resulted in the nation’s wage growth. Despite the results, experts have stated that the current situation must be monitored to keep the growth going.

Jomar Teves

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After four years in business school and working for multinational clients, Jomar believes he can improve the world through his writings via Public Spectrum, by informing the public on the latest news and updates happening around the government and society. Jomar has eight years experience as a writer and has a degree in Business Administration and Entrepreneurial Marketing.