Average pay rises in new enterprise agreements have risen to 4.7 per cent, the highest for 2023, with wage increases in new deals at four per cent or more for six consecutive weeks.
New fortnightly data released by the Fair Work Commission shows average pay rises in agreements lodged in August increased from 4.4 per cent to 4.7 per cent across 174 agreements covering 65,553 workers.
The headline number was influenced heavily by six 22-month agreements in educational services which delivered average annual pay rises of 7.6 per cent to a combined 5395 workers.
Pay rises were smaller in other sectors including 4.1 per cent in the banking and building sectors; 3.8 per cent in manufacturing; 3.7 per cent in the amusement, events and the recreation industry; and 3 per cent in the retail sector.
However, two agreements covering almost 11,000 state and territory public servants had average annual pay rises of just 2.6 per cent.
The average 4.7 per cent pay rise compared to 4.4 per cent in the previous fortnight and four per cent two weeks earlier.
According to treasury forecasts in the federal budget, economy-wide wages growth is tipped to be four per cent this financial year before falling to 3.25 per cent in 2024-25.
Inflation is forecast to fall to 3.25 per cent by June 30 next year and 2.75 in 2024-25.
Meanwhile, the SEEK Advertised Salary Index rose 4.8 per cent in the year to August, including month on month rise of 0.5 per cent.
SEEK Senior Economist, Matt Cowgill said: “We’re nearly at a point where advertised salary growth is outpacing the cost of living, with the SEEK ASI up 4.8 per cent in the year to August and inflation up 4.9 per cent in the year to July.
“However, this increase is not common across all industries – most are still seeing moderate growth after the highs of 2022.
“The increase in the overall ASI has been driven in large part by the Community Services & Development industry, where minimum wages for certain occupations in aged care have increased by 15 per cent.”
He said given the pick-up was not common across many industries, the acceleration in the ASI was unlikely to continue in upcoming months.
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