FX.co ★ Australia Q2 Annual Wage Growth Beats Estimates

Australia's Wage Price Index, adjusted for seasonal variations, increased by 3.4% year-on-year in the second quarter of 2025, maintaining the same growth rate as the previous quarter and surpassing the anticipated rise of 3.3%. This stronger growth was propelled by wage increases in both the public and private sectors. Public sector wages experienced a significant jump, growing by 4.7% compared to 3.6% in the first quarter, while private sector wages increased by 3.4%, up from the prior 3.3%. This indicates a recovery for the private sector, which had seen its weakest wage growth since the second quarter of 2022 in the two preceding quarters. Looking at specific industries, the electricity, gas, water, and waste services sector reported the highest annual wage increase at 5.0%. This was followed by the information media & telecommunications and healthcare & social assistance sectors, both showing a 3.9% rise. The most significant contributions to quarterly wage growth came from roles within the professional, scientific, and technical services sector. On a quarterly basis, wage prices rose by 0.8%, slightly less than the previous quarter's 0.9% increase, aligning with market expectations.