The latest figures from the Australian Bureau of Statistics show that the annual wage growth has been maintained at the historically low annual growth rate of 1.4% for 2 quarters of 2020. The October to December 2020 data showed a seasonal adjustment to the wage price index rise of 0.6%. The latest data showed a large proportion of the private sector wage growth came from the continued restoration of hourly wages back to pre-pandemic levels following reductions made in the June and September 2020 quarters.
The Annual wage growth of the December 2020 quarter ranged from 0.3% growth of the accommodation & food services industry to 2.4% of the education & training industry. The moderate growth was influenced by businesses rolling back short-term wage reductions, returning wages to pre-Covid levels. The phased implementation of the Fair Work Commission annual wage review also had a small positive impact on wages.
Wage freezes have also had an impact on the public sector with its lowest annual wage increase (1.6%) since the commencement of the series.