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6345.0 - Labour Price Index, Australia, Jun 2008 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 13/08/2008   
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COMMENTARY


SECTOR - TREND ESTIMATES

The All sectors quarterly change is 1.0% with the through the year change being 4.1%. Increases in the Private Sector have been greater than the Public sector for each of the most recent four quarters. The through the year change for the Private sector is now 4.3% compared to the Public sector increase of 3.8%.


STATE

In original terms, the quarterly changes ranged from 0.6% recorded by both South Australia and the Australian Capital Territory, to 1.7% in the Northern Territory. Western Australia recorded the largest change through the year (5.6%) and Tasmania the lowest (3.7%).


INDUSTRY

In original terms, Mining recorded the highest quarterly and through the year changes of any industry (2.5% and 6.7% respectively). These movements are the highest recorded by Mining since the start of the survey.

The lowest quarterly rate of change was recorded by Communication services (0.1%), with Accommodation, cafes and restaurants recording the lowest through the year change (2.2%).


NATIONAL MINIMUM WAGE INCREASES

The Australian Fair Pay Commission (AFPC) has had responsibility for setting National Minimum Wages since early 2006. The first AFPC decision had a date of effect of 1 December 2006 which flowed through to the wage price index of March quarter 2007. The second AFPC decision, with a date of effect of 1 October 2007, mostly impacted the December quarter 2007 wage price index.

The third AFPC decision takes effect on 1 October 2008, and unless implemented early by employers, is not expected to flow through to the wage price index until the December quarter 2008.


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