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6345.0 - Labour Price Index, Australia, Jun 2009 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 12/08/2009   
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COMMENTARY


AUSTRALIA/SECTOR (TREND)

In the June quarter 2009, the Private sector wage price index rose by 0.7% compared to 1.0% for the Public sector, with the All sectors index recording a quarterly movement of 0.8%.

Public sector movements were greater than the Private sector for both the quarter and the year through to the June quarter 2009.

The through the year movement for the Private sector for the June quarter 2009 was 3.6%, which is the lowest since the December quarter 2004 (3.5%). In contrast, the Public sector through the year movements since the June quarter 2008 have been showing an increasing rate of growth, from through the year movements of 3.8% for the June quarter 2008 to 4.5% for the June quarter 2009. The All sectors through the year movement for the June quarter 2009 was 3.9%.


STATE/TERRITORY (ORIGINAL)

The highest quarterly movement was recorded by New South Wales (0.7%) and the lowest by South Australia and the Northern Territory (both 0.4%). Through the year increases ranged from 3.5% for Victoria and 4.6% for Western Australia. This is the first time that the through the year change for Western Australia has been below 5.0% since the March quarter 2007.

The Private sector in each state and territory recorded a lower quarterly increase in the June quarter 2009 than in the June quarter 2008 with the exception of the Australian Capital Territory where there was a higher quarterly movement (0.6% for the June quarter 2009 compared to 0.3% for the June quarter 2008).

The lowest June quarter 2009 quarterly increase in the Private sector was jointly recorded by South Australia and Tasmania, both with 0.2%. This is the lowest quarterly increase for the Private sector in South Australia since the June quarter 1999 (0.1%) and the equal smallest ever recorded by the Private sector in Tasmania.

In Western Australia, the Private sector wage price index increased by 0.4% in the June quarter 2009, compared to 1.6% for the June quarter 2008. This is the fourth quarter in a row for which the quarterly increase has been smaller than the quarter before.

Public sector quarterly movements ranged from 0.2% for Victoria, Queensland, and the Northern Territory, to 1.1% recorded by Western Australia and Tasmania. The highest through the year movement for the Public sector was 6.4% in Western Australia, which is the highest ever through the year movement for the Public sector in that state.


INDUSTRY (ORIGINAL)

In the June quarter 2009, Retail trade and Accommodation, cafes and restaurants recorded the lowest quarterly movements of any industry (0.2%) with Construction recording the highest (1.2%).

Increases through the year ranged from 2.7% for Manufacturing to 4.6% for Electricity, gas and water supply.

The Private sector quarterly change for the Mining industry (1.1%) is less than that of the same quarter last year (2.4%). The June quarter 2008 quarterly and through the year movements for Mining, Private sector, were the highest ever recorded for these series.

In the Manufacturing industry the All sectors quarterly movement of 0.5%, is down from 1.4% in the corresponding quarter last year. The All sectors through the year movement (2.7%) is the smallest through the year movement for this series since the December quarter 1999.

Although the Construction industry Private sector quarterly movement (1.2%) was the highest of any industry this quarter, this was less than that recorded in the June quarter 2008 (1.6%).

The Private sector quarterly movement for the Wholesale trade industry of 1.0% is less than that recorded in the June quarter 2008 (1.8%) which was the equal highest quarterly movement recorded by this industry.

The Property and business services All sectors quarterly movement (0.7%) is 0.5 of a percentage point lower than the June quarter 2008. The All sectors through the year movement has declined 0.6 of a percentage point from the March quarter 2009 to 4.3%. The through the year movement for this series peaked at 5.4% in the June quarter 2008.


NATIONAL MINIMUM WAGE INCREASES

There has been some variation in the date of effect and timing of Australian Fair Pay Commission Wage Setting Decisions. The 2006 decision had a date of effect of 1 December 2006, and its impact was mostly upon the March quarter 2007 wage price index. The 2007 and 2008 decisions had a date of effect of 1 October and affected the December quarter wage price index in those years.

In July 2009 the Australian Fair Pay Commission decision was to make no change to minimum wage rates.


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