Wage growth in Australia has continued to slow down with the lowest annual increase since the series first began in 1998.
The Australian Bureau of Statistics (ABS) released the seasonally-adjusted wage price index (WPI) last week showing a 0.4 per cent rise in the March quarter 2016, leaving the annual growth rate at 2.1 per cent.
According to the ABS, wages for the private sector grew by just 0.4 per cent leaving the annual rate of growth at 1.91 per cent. Those in the public sector saw their wages increase by 0.5 per cent compared to the prior quarter, seeing the annual rate rise to 2.5 per cent.
Those in the construction, professional, scientific and technical services and administrative and support service industries all recorded an annual growth of less than 2 per cent for five consecutive quarters.
Following the release of last week’s weak wage growth, most analysts expect the Reserve Bank will wait for the June quarter inflation report before considering another interest rate cut.