Overview
- The Australian Bureau of Statistics' Wage Price Index for the June quarter rose 0.8% from the previous quarter and 3.2% year‑on‑year, with public‑sector wages growing faster than private wages.
- July labour‑force data released Thursday showed net employment fell by about 15,800 and the unemployment rate ticked up to 4.5%, while the participation rate eased and hours worked declined.
- The monthly fall was driven entirely by part‑time job losses (around 32,100), even as full‑time employment rose by roughly 16,300, and June's prior hiring surge was revised up to about 80,200, highlighting volatility in the series.
- Markets and economists say the softer July print reduces near‑term pressure on the Reserve Bank to raise rates, though RBA officials say they need more sustained labour‑market slack before changing policy.
- Nominal wages remain below recent CPI inflation (around 3.7%), producing consecutive quarters of real‑wage decline and eroding household incomes even as wage growth stays above pre‑COVID levels.