Workers in low-paid occupations are getting much bigger bumps in their pay packets compared to their higher-skilled counterparts.
Treasury analysis of Australian Bureau of Statistics data found wages for the lowest skilled occupations grew 2.3 per cent in the three months to September but just 1.2 per cent for the most skilled workers.
The industrial umpire’s decision to lift the minimum wage boosted wages in this category for the September quarter.
More than 400,000 Australian workers got a boost to their pay slips after the Fair Work Commission’s decision, with affected full-time workers pocketing an extra $40 a week.
Workers in retail, administration and support services – such as cleaning and gardening – and services such as hair and beauty experienced the strongest wage growth in the September quarter.
The analysis showed wages grew at their fastest rate in nearly a decade in the September quarter.
But sky-high inflation is eroding these gains, with wages contracting at a rapid rate when accounting for the rising cost of living.
While some have raised concerns about higher wages putting upwards pressure on inflation, Treasurer Jim Chalmers said wages were not to blame for the inflation crisis.
“We have an inflation problem because of a war in Ukraine, pressure on global supply chains and other challenges ignored for too long,” he said.
The December quarter wage price index will be released on February 22.
