The private sector wage bill has increased by 3.6 per cent in 2022 with businesses delivering the strongest rate of compensation rise in more than a decade, according to a media release by the Australian Chamber of Commerce & Industry (ACCI).
ACCI chief executive Andrew McKellar said the annual private sector labour cost growth has reached peaks unseen since the mining boom in 2007.
“While wage outcomes in the December quarter did not match that of the September quarter, growth was still strong,” Mr McKellar pointed out.
He added that there is no indication that the rapid salary increase is easing anytime soon as all sectors reported a boost in the pay of more than 0.6 per cent in the third quarter of 2018, indicating that higher wage growth is being observed across the board.
The ACCI official also emphasised that the most severe labour shortages, such as lodging and food services, experienced the highest quarterly wage growth.
Meanwhile, employers continue to experience strong pay pressure, and they may anticipate additional wage rises in the next year.
“Enduring labour shortages mean businesses are working to recruit and retain staff through regular and ad hoc wage reviews, bonuses, promotions, and other incentives,” Mr McKellar said.
After achieving results for responsible nominal wage growth, Mr McKellar said that more work is now needed to ease inflationary pressures and supply chain restrictions.
