Annual wages growth slows, but it’s not all bad news

The decline in growth reflects the slowing economy, although with CPI down to 2.4 percent, the figures at least represent modest real wage growth, writes Terry Rawnsley.

The latest Wage Price Index (WPI) data confirms that wages growth is past its peak. The annual growth of 3.2 percent, is down from 3.6 percent in the previous quarter and is at the lowest rate since September quarter 2022. Private sector annual growth (3.3 percent) was the lowest since June 2022, while annual wage growth for the public sector (2.8 percent) fell below 3 percent for the first time since the June quarter of 2023. The decline in growth reflects the slowing economy, although wi...

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Authors: Terry Rawnsley

Published Date: 20 February 2025