Tasmania leads national wage growth according to ABS figures

Tasmanian workers have enjoyed a jump in wages in the year to September that leads the nation, according to the latest ABS figures.

Smiling mature man working in carpentry workshop.

Wages in Tasmania are growing faster than any other state in the nation, new figures show.

Wages in the state grew by 4.0 per cent in the year to September, Australian Bureau of Statistics wage price index figures showed.

The Northern Territory experienced the slowed growth at 3.0 per cent, while national growth slowed to 3.5 per cent.

Nationally health care and social assistance were the fasted growing industries, followed by retail trade.

ABS head of prices statistics Michelle Marquardt said the national slowdown was expected.

“Wage rises for many jobs can be directly or indirectly linked to the outcomes of the Fair Work Commission Annual Wage Review decision,” she said.

“The latest decision of a 3.75 per cent wage increase paid from 1 July 2024 was lower than the September quarter 2023 increase of 5.75 per cent.

“It was also lower than the Commission’s September quarter 2022 awarded increase of between 4.6 per cent and 5.2 per cent.”

Acting Premier Guy Barnett speaks to media at Littlewood Berry Farm Richmond with Leader of the Opposition, Peter Dutton. Picture: Linda Higginson

Treasurer Guy Barnett said it was good to see Tasmania leading the nation.

“Wage growth in Tasmania grew by 1.1 per cent for the September quarter and hit a nation-leading 4.0 per cent for the 12 month period, outstripping the national average,” he said.

Treasurer, Guy Barnett, welcomed the figures, noting the real impact that this has for Tasmanian families.

“Tasmania’s nation-leading wage growth is good news for workers and demonstrates the underlying strength and resilience of the Tasmanian economy,” the Treasurer said.

“Not only do we have historically low levels of unemployment, nearly three years at or below 4.3 per cent, but Tasmanian workers are earning more than ever before, and Tasmania also posted record retail spending in September.

“Our 2030 Strong Plan for Tasmania’s Future is focused on what matters, like investment, job creation and stimulating the economy.”

TCCI CEO Michael Bailey speaks to the media on Parliament Lawns in Hobart on Tuesday, November 7, 2023.

But Tasmanian Chamber of Commerce and Industry CEO Michael Bailey said wages growth needed to be balanced with increases in productivity.

“We’re seeing wages growing at the fastest rate in the nation, but in the public service in particular, we’re not seeing growth in productivity to match.,” Mr Bailey said.

“It’s time the government also looked at ways to make the public sector much more productive so that taxpayers can get bang for buck with the growing wages bill.”

The ACTU welcomed the national wage growth

“Real wages are growing for working people who have struggled in the cost-of-living crisis and need pay increases to counter excessive profit taking by insurers, supermarkets and other big retailers,” ACTU President Michele O’Neil said.

“Real wages are broadly trending back up after a decade of going nowhere under the Liberal National Coalition. In fact, the average Australian worker would be $5560 worse off today, if annual wage growth had continued at the same pace as under the Coalition.”