Latest news with #payrises
News.com.au
4 days ago
- Business
- News.com.au
‘Bump in the road': Labour market warning after ABS reveals sluggish wage growth for Aussie workers
The era of bumper pay rises could be dead for Aussies amid new figures revealing sluggish wage growth over the last quarter – with warnings now emerging the country's labour market has hit a 'bump in the road'. The wage price index rose only 0.8 per cent over the 2025 June quarter and 3.4 per cent annually, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS). The growth was largely unchanged from the March quarter but down from the 4.1 per cent growth at the same time last year, ABS head of prices statistics Michelle Marquardt said. 'The share of wage changes greater than 4 per cent has declined since this time last year,' Ms Marquardt said. 'The smaller proportion of jobs with larger wage increases has contributed to lower overall wage growth.' Private sector wages rose 0.8 per cent over June 2025 compared with a 1 per cent growth for the public sector. Ms Marquardt said this reflected backdated pay rises from recently approved state-based enterprise agreements coming into effect for the public sector in addition to regularly scheduled pay rises. But both sectors recorded lower annual wage growth compared with last year's June quarter. Jobs in the mining, electricity, gas, water and waste services industries recorded the highest quarterly rise with a 1.3 per cent increase. The retail industry was the lowest – just a 0.2 per cent quarterly growth – while the finance and industry services had the lowest through-the-year growth at 2.6 per cent. In the first quarter of 2025, wages grew by 0.9 per cent and 3.4 per cent year on year. Real wages rose by 1.3 per cent over the year to June 2025 - something leading firm KPMG says is the seventh consecutive quarter of real wage gains. 'This improvement has occurred alongside a decline in inflation from 7.8 per cent in December 2022 to 2.1 per cent, undermining claims of a wage-price spiral,' KPMG chief Economist Brendan Rynne said 'Without improvements in labour productivity, these gains can only go so far. 'Productivity growth is essential for ensuring continued real wage increases and easing pressure on businesses.' However, Deloitte has warned that the labour market has hit a 'bump in the road' off the back of modest growth in the economy. Total jobs growth slowed at the midpoint of 2025, with the employment growth over the months of May and June close to zero, Deloitte Access Economics partner David Rumbens said. 'The number of unemployed Australians now sits at 659,600 people – the highest level since late 2021 – which has seen the unemployment rate increase to 4.3 per cent,' he said. 'The recent jobs flat patch has seen overall annual employment growth moderate to 2.0 per cent (286,300 workers). '(It's) still solid but below the pre-pandemic average.' Mr Rumbens said the overall numbers masked sectoral imbalances – pointing to the health care, education and public administration areas accounting for more than two-thirds of total employment gains in the year to March quarter 2025. The number of employed Australians is expected to rise over coming years, albeit at a slower rate than post-pandemic levels. 'Contained inflation, declining interest rates, and gradual real wage gains are expected to strengthen parts of the market sector, particularly across industries exposed to the willingness and capacity of households to spend,' Mr Rumbens said. 'Overall, market sector employment is expected to grow by 0.9 per cent (86,500 workers) in 2025-26.'
Telegraph
18-07-2025
- Health
- Telegraph
Doctors enjoy bigger pay rises than any other profession since 2017
Doctors have been handed the biggest pay rises of any profession since 2017, according to official data, as Britain braces for five days of strikes in a row over pay. Figures published by the Office for National Statistics (ONS) showed doctors have benefited from pay rises of 91pc over the past eight years, a real-terms increase of 41pc when adjusting for inflation. The average advertised salary for a medical practitioner was £99,500 in May, up from £52,000 in January 2017. After adjusting for inflation, this represents a £21,400 real terms increase. The figures, which were compiled by tracking median salaries in online job adverts, show that no group of workers has seen bigger pay rises than medical practitioners. It comes as junior doctors are poised to walk out over five days from next week, with unions demanding a 29pc pay rise. The ONS data shows doctors' advertised wages have grown twice as fast as those earned by cleaners, which saw the second-largest increase by profession over the period. Cleaners are on average offered 21pc more than eight years ago in real terms, boosted by big increases to the national minimum wage. The ONS data includes 105 occupations, of which only 25 had higher advertised salaries than in 2017 after inflation. Pilots and printers miss out The figures underline tensions as doctors are pushing for another major pay increase after receiving a 22pc boost last year, at a time when big tax rises are looming. In contrast, the median advertised salary in the UK was £33,000 in May, scarcely up from £29,100 over the same period. Once adjusting for inflation, this represents a 16pc fall in real terms – equivalent to £4,760. Patients are bracing for cancellations and delays from next week unless Wes Streeting, the Health Secretary, can avert strikes in negotiations with unions. Hospital bosses have warned the strikes will cause 'absolute chaos', with reports of previous walkouts being linked with five deaths in 2023 and 2024. It is understood Mr Streeting is exploring writing off student debt to avert up to 50,000 medics going on strike. The figures published by the ONS show that the vast majority of occupations offer lower advertised average wages now than in 2017 after inflation – making doctors significant outliers. Among the biggest losers are pilots, logistics managers and printers. Likewise, architects, IT technicians and project managers command far lower salaries in today's market - with median advertised pay a fifth lower after inflation. While the data only includes job postings that specify salary bands, it comes after a decade and a half of poor pay growth following the financial crisis. The biggest relative winners are mostly found in occupations boosted by inflation-beating jumps in the minimum wage and worker shortages. They include traffic wardens, labourers and forklift drivers. Tax rises on the horizon Demands from doctors for pay rises well above the 5.4pc they have been offered come against a backdrop of a shrinking economy, struggling jobs market and tight public finances. Hiring has been falling for three years straight, with Deutsche Bank warning 'hiring plans are near a standstill.' The latest figures published this week meanwhile show unemployment at a four-year high of 4.7pc. Polling by YouGov shows only a third of the public are behind striking doctors, while half oppose the walkouts. Economists have warned they will cost the economy nearly £13m a day. The pay protests from doctors come as Rachel Reeves faces a black hole in the public finances that could be as large as £30bn ahead of the autumn Budget. High borrowing costs, uncertainty from Donald Trump's trade war and costly Labour u-turns on welfare and pensions mean the Chancellor will likely have to put through major tax rises. A British Medical Association spokesperson said: 'It's selective to just look at job advert figures – they do not represent what people earn and their purchasing power. When you look at the ONS's own statistics on earnings, doctors' pay has fallen by a much greater amount in real terms than the rest of the population. 'Meanwhile, while doctors' pay is still at least a fifth down on 2008/09, analysis of ONS figures show that wages across the whole economy are closer to returning to pre-2009 levels.'
Telegraph
11-07-2025
- Business
- Telegraph
It's time to stand up to the union bullies
The foundational error of this Labour Government was made in its first weeks in office, when the decision was made to meet the demands of intransigent unions for pay rises. Rachel Reeves, the Chancellor, awarded above-inflation raises for swathes of the public sector, including 22 per cent for junior doctors; Louise Haigh, the Transport Secretary, meanwhile, offered train drivers 14 per cent. The new Government's decision to simply buy its way out of a political headache set a precedent that was keenly observed by the unions. Junior doctors are once again militating for massive pay rises, with strikes on the way. The Unite union, meanwhile, one of Labour's financial backers, is attempting to put the squeeze on the party over Angela Rayner's stance on the Birmingham bin strikes. Unite has suspended Ms Rayner's membership and is now reviewing its relationship with the party. Ms Rayner, for her part, is understood to believe she is not currently a member regardless of the union's stance. She should build on this: it is the Government's task to stand up to union bullies attempting to extort the taxpayer at a point when the public finances are already under intolerable strain. Similarly, Wes Streeting, the Health Secretary, must stand firm in his negotiations with the British Medical Association. His proposal to cut gold-plated pensions to fund current pay rises is a good one, and deserves serious consideration. The BMA's insistence that doctors require large pay rises to make up for price rises since 2008, on the other hand, appears to be rooted in the use of an inflation measure known to significantly overstate the rate of price increases. Given that NHS productivity in hospitals has fallen since 2019, it is difficult to see how such a rise can possibly be viewed as reasonable, even by partisan advocates. Bridget Phillipson, the Education Secretary, for her part, is facing the prospect of further strikes, with the National Education Union rejecting an offer of a 2.8 per cent pay rise. The overall impression is of a Government that seems to lack any tool for dealing with union pressure other than simply folding and paying up. With the economy now beginning to weaken under the burden of the state, it is surely time for a new strategy. Yet the current thrust of Government policy is to give the unions more powers and more concessions. The Employment Rights Bill is set to be followed by the repeal of the minimum service laws put in place by the Conservatives in an attempt to 'create a better relationship with unions that will prevent the need for strikes'. This is utterly wrongheaded. The Government should aim to keep public services operating, and to give employers certainty. It is time to weaken the hand of the unions, not strengthen it.
