Australia’s Wage Growth Falls to 3.2% as Most Jobs See Smaller Pay Rises
Synopsis
Annual wage growth continued to moderate in June, while the share of jobs with wage increases below 4% climbed to 79%, signalling softer pay pressures across the economy.
The Australian Bureau of Statistics (ABS) report, Wage Price Index, Australia, June 2026, published on August 19, revealed that Australian wages grew 3.2% in the 12 months to June 2026, which was below the rate of inflation. The index rose 0.8% during the quarter and 3.2% annually on a seasonally adjusted basis.
Wages in the private sector rose 3.1% in a year, while public-sector wages rose 3.4%. Australian wage growth has remained relatively subdued from the recently observed peak in 2023, as the annual rate fell from 3.3% in the March quarter.
Pay increases also were redistributed. Of the 79% of jobs with annualised wage growth below 4%, 75% had done so 12 months ago, a decrease in the ABS's measure, the agency reported.
Industry results are still mixed
Industries had different levels of wage growth in Australia. The largest annual rise was for electricity, gas, water and waste services (+4.3%), while mining and public administration and safety (+3.7%) services were next.
Transport, postal and warehousing (+3.5%) and health care and social assistance (+3.6%) were the only sectors with annual wage increases. Construction and manufacturing each had a 3.2% share.
Retail trade wages rose 2.9%, as did financial and insurance services and professional, scientific and technical services.
The figures reflect the response by employers to increased statutory wage floors. The National Minimum Wage also rose from July 1, to $26.44 per hour ($1,004.90 per week), and award minimum wages rose 4.75%.
Inflation is still higher than wage growth
In June, wage growth was lower than consumer inflation in Australia. The CPI was seen rising 3.8% year-over-year and the underlying inflation was 3.6% for the period, the ABS said.
The biggest annual increase was for housing, which increased 6.8%. New dwelling prices rose 5.8 per cent and rents 3.6 per cent over the 12 months to June.
Annual wage growth is 0.6 percentage points below the current level of annual inflation, so real wages fell by 0.6%, for the year.
Source: Capital Brief
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
