Australia Wage Growth

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.