Australia’s wage bill just hit a historic high! The Australian Bureau of Statistics (ABS) reports that employers across the country paid a staggering $103.7 billion in wages and salaries in September 2024. This marks a significant 3.9% jump(or $3.9 billion) compared to August, cementing a new record.
Bjorn Jarvis, ABS head of labour statistics, noted: “This is the first time total monthly wages and salaries have exceeded $100 billion. A year ago, it was $97.5 billion, and two years ago, $90.9 billion—showing the remarkable growth we’ve witnessed over time.”
What’s driving the growth?
This September surge follows a familiar trend: many industries pay out bonuses and other periodic payments at the end of the quarter. Other factors also played a role, including:
- Wage increases
- Changing hours worked
- One-off payments like bonuses and backpay
- More people employed overall
However, annual growth in wages was slightly slower this year. Total wages grew 6.3% from September 2023 to September 2024, down from the previous year’s 7.3% annual growth. All 19 industries saw wage increases from August to September 2024, but a handful stole the spotlight: Six industries, including Financial Services, Mining, and Retail, accounted for 60% of the $3.9 billion rise. But annual growth told a more nuanced story:
- Accommodation and Food Services grew a modest 2.8% this year, a sharp drop from 7.8% last year, reflecting weaker consumer demand.
- On the flip side, Public Administration and Safety saw an impressive 11.8% growth, boosted by a one-off payment from Victoria’s public service enterprise agreement.
Wages Across Australia
Wage growth wasn’t just an industry story; it spanned the entire nation. Every state and territory, except for the Northern Territory (-1.9%), saw an increase from August to September. Annual growth was softer overall, but Victoria bucked the trend with slightly higher growth in 2024 (6.3%) compared to 2023 (6.0%). Australia’s wage landscape continues to reflect the complex interplay of economic forces. Bonuses, employment trends, and sector-specific factors all shaped September’s record-breaking numbers. As the ABS data shows, while growth remains strong, it has tempered compared to the recovery-driven surge of previous years.
Ben Thompson, Chief Economic Officer, Employment Hero: “The ABS’ recent Monthly Employee Earnings Indicator (from April to September) indicates that the average Australian annual salary has reached $103,000. However, our October Smart Match Employment Report, which focuses on real-time, verified payroll data from SMEs, and not experimental estimates offers a more accurate and current picture. The ABS data reflects a seasonal September spike, likely driven by significant bonus payouts in high-earning sectors such as banking and financial services ($180,000+) and real estate ($145,000+), which temporarily inflate the national average.
“Our October data shows the average salary at $95,198, representing the typical post-September decline of at least 3% month-on-month, a trend we observe consistently each year.For the retail and hospitality sectors, salaries have been flat or slightly declining over the past few months. Healthcare salaries are falling on an annual basis, not due to a drop in hourly rates which show slight growth, but due to reduced working hours, underscoring ongoing challenges for workers in these essential industries.
“While year-on-year growth persists, it is slowing, and several industries are plateauing or seeing minor reductions. Combined with rising living costs, many Australians have less disposable income heading into this retail-heavy period. The upcoming Black Friday sales may surpass Christmas as the busiest retail period, but this doesn’t indicate higher spending power. Instead, it could reflect consumers seeking better deals to stretch their budgets amid increasing financial pressure.”
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