Australia Wage Growth

Australia's seasonally adjusted Wage Price Index rose by 3.4% yoy in Q2 2025, matching the previous quarter's pace and exceeding expectations of a 3.3% increase. An acceleration in both the public and private sectors drove the stronger-than-expected growth. Public sector wages surged by 4.7%, up from 3.6% in Q1, while private sector wages rose by 3.4%, compared to 3.3% previously. This marks a rebound for the private sector, which had recorded its weakest growth since Q2 2022 in the prior two quarters. In original terms, the electricity, gas, water, and waste services industry recorded the highest annual wage increase at 5.0%, followed by information media & telecommunications and healthcare & social assistance, which both rose by 3.9%. The main contributors to the quarterly wage growth were roles in professional, scientific, and technical services. On a quarterly basis, wage prices increased by 0.8%, down from a 0.9% gain in the previous quarter and in line with market forecasts.