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6345.0 - Labour Price Index, Australia, Dec 2008 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 25/02/2009   
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COMMENTARY


SECTOR (TREND ESTIMATES)

The Private sector and Public sector wage price indexes both rose 1.1% for the December quarter 2008, with the All sectors recording a quarterly movement of 1.0%.

The All sectors through the year movement for the December quarter 2008 is 4.2%. The through the year change for the Private sector is 4.3% for the December quarter 2008. The Public sector through the year movement for the December quarter 2008 is 4.0%. This is higher than the previous three quarters of 2008, but still 0.2 of a percentage point lower than the through the year change for December quarter 2007.


STATE

In original terms, all states and territories reported December quarter 2008 increases of at least 1.0%, with Western Australia recording the highest quarterly change (1.8%). Through the year changes ranged from 3.7% for the Australian Capital Territory to 5.7% for Western Australia. This is the seventh consecutive quarter in which the through the year change for Western Australia has been over 5.0%.


NATIONAL MINIMUM WAGE INCREASES

The Australian Fair Pay Commission (AFPC) 2008 Wage Setting Decision had a date of effect of 1 October 2008. Standard Federal Minimum Wage and all Australian Pay and Classification Scales were increased by $21.66 per week for adults. The increase impacted the December quarter 2008 wage price index.

There has been some variation in the date of effect and timing of AFPC Wage Setting Decisions. The 2006 decision had a date of effect of 1 December 2006, and its impact was upon the March quarter 2007 wage price index. The 2007 decision had a date of effect of 1 October 2007 and affected the December quarter 2007 wage price index.


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