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Australian salary growth slows in recent months

June 26, 2023
in Business
Australian salary growth slows in recent months
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Advertised salaries in Australia, as measured by the SEEK Advertised Salary Index (ASI), experienced a moderate growth of 4.7 per cent over the year leading up to May 2023, according to the latest report by employment marketplace SEEK.

This represents a slight decrease compared to the growth rate observed until April. In May, there was a minimal month-on-month increase of 0.2 per cent, which is lower than the growth recorded in the previous three months.

Matt Cowgill, the Senior Economist at SEEK, points out that while the year-on-year growth in advertised salaries remains robust, there has been a noticeable slowdown in recent months compared to the booming period witnessed in 2022.

Analysing the past six months, it is found that the average monthly growth rate in advertised salaries was 0.29 per cent. In contrast, the six months preceding that, from June to November 2022, exhibited a higher average growth rate of 0.48 per cent per month.

The upcoming award wage rise by the Fair Work Commission, scheduled to take effect in July, coupled with the persistently high cost of living, has led to increased concern and awareness surrounding salaries and wages. Individuals are understandably paying more attention to developments in this area, considering these factors.

Matt Cowgill, the SEEK Senior Economist, emphasises, “Although the year-on-year pace of advertised salary growth remains strong, we’ve seen a clear slowing in recent months and since the boom of 2022. In the past six months, advertised salaries grew by an average of 0.29 per cent each month.

“In the six months before that, from June to November 2022, the average was 0.48 per cent per month. Given the Fair Work Commission’s award wage rise, which takes effect in July, and the continued high cost of living, there is understandably heightened focus on salaries.

“Time will tell how advertised salary growth will respond over the coming months.”

Earlier, in April 2023, advertised salaries in Australia witnessed a growth of 4.8.per cent. 

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Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/australian-salary-growth-slows-in-recent-months.html

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