none

WAGE GROWTH DROPS TO RECORD LOW, CONSTRUCTION WEAKENED

24-02-2016
by 
in 

Wage growth has taken a hit at a record low of 2.2% per year,

The Australian Bureau of Statistics wage price index rose a tiny 0.5 per cent in the December quarter, which is another drop from the previous 0.6% in September’s quarter wage price growth.

The Bureau further noted that it is the lower wage growth since the beginning of the series in 1998.

The smallest quarterly rise for industries was in mining, at just 0.1% with Financial and insurance services recording the largest rise at 1.1%,

"Subdued wages growth has been supporting jobs growth overall but household income growth has remained weak," Mr Fabo said, an ANZ economist.

"We expect modest improvement in wages and household income growth, and hence consumption growth, over the year ahead.

"But we struggle to see annual growth in household spending returning to 3.5 per cent rates as per the RBA view." He continued.

In particular, construction has fallen 3.6% in the December quarter, with the Beura estimating the value of construction work coming in at $48.8 billion thanks to a collapse in engineering work.

Construction across all sectors was down 4.3% over the year, the value of engineering work falling 9.5% in the quarter, and about 15% ober the year, and reesidential and building construction were up 8% and 11.5 % respectively year-on-year.

Commonwealth Bank’s Gareth Aird said the decline in construction work was greater than the market expected.

"The breakdown by public and private sectors shows that the much hyped lift in public sector infrastructure has yet to occur," Mr Aird said.

"Despite there being plenty of talk around big investment in public infrastructure the data shows that it simply isn't the case, at least at the national level.

"Public construction work done was flat over the year and has been making a negative contribution to GDP growth since 2010.

Related news & editorials

  1. 09.03.2020
    09.03.2020
    by      In
    South Australia boasts a highly skilled and educated workforce, a renewed focus on entrepreneurship and innovation, and multi-billion-dollar defence industry contracts.
    The state’s world-class research institutions and universities, an investment in skills and the development of entrepreneurial... Read More
  2. 02.03.2020
    02.03.2020
    by      In
    While the manufacturing sector continues to decline with the Ai Group’s Performance of Manufacturing Index falling to a new low of 44.3 in February, there are grounds for optimism in some of the underlying data. Even though the PMI figure is the lowest for almost five years, key subindexes such as... Read More
  3. 27.02.2020
    27.02.2020
    by      In
    Industry Update sat down with Matthew Kelly, EM Manufacturing and Wholesaling, St.George, to find out his views on the financial health of the manufacturing sector in 2020.
    IU: How do you view the general financial climate for the Australian manufacturing sector in 2020?
    MK: I believe 2020 will see... Read More
  4. 14.02.2020
    14.02.2020
    by      In
    Universal Robots has teamed up with global vendor finance company DLL to launch a cobot leasing programme that will enable any manufacturer to reap the benefits of automation without worrying about cashflow or seasonal fluctuations.
    The global programme is expected to appeal to the market in... Read More