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6345.0 - Labour Price Index, Australia, Jun 2010 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 18/08/2010   
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COMMENTARY


AUSTRALIA/SECTOR (TREND)

In the June quarter 2010, 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%. This was the sixth consecutive quarter that the All sectors quarterly movement was below 1.0%.

Public sector movements were greater than those in the Private sector for both the quarter and the year through to June quarter 2010. After diverging to a greater extent last quarter than at any other time since the commencement of the series, the gap between the Public sector through the year change (4.0%) and the Private sector through the year change (2.7%) lessened this quarter.


STATE/TERRITORY (ORIGINAL)

The highest quarterly movement (1.0%) was recorded by Western Australia and the lowest quarterly movement (0.3%) by the Australian Capital Territory. Through the year increases ranged from 2.7% for Victoria to 3.7% for Tasmania.

In the Private sector, only Victoria and the Australian Capital Territory recorded a lower quarterly increase in the June quarter 2010 than in the June quarter 2009. The lowest quarterly increase in the Private sector in June quarter 2010 was jointly recorded by Victoria, Tasmania and the Australian Capital Territory (0.5%). The highest quarterly increase (1.0%) was recorded by both Western Australia and the Northern Territory.

In the Australian Capital Territory, the Private sector through the year movement continued to decline, with the June quarter 2010 through the year movement (2.1%) being the lowest recorded since the commencement of the series. The all states and territories June quarter 2010 through the year movement of 2.8% was up on the through the year movement of the March quarter 2010 (2.6%), but continued to reflect the easing of wages growth in the Private sector throughout 2009.

South Australia and Tasmania were the only states in which the quarterly movement for the Public sector for the June quarter 2010 was greater than that for the Private sector. In the Public sector, South Australia and Western Australia jointly recorded the highest quarterly movement of all states and territories in the June quarter 2010 (0.9%) and Queensland recorded the highest through the year movement (5.0%). New South Wales and the Northern Territory each recorded the lowest quarterly movement (0.1%). The lowest through the year movement in the June quarter 2010 for the Public sector was 3.3% in South Australia.


INDUSTRY (ORIGINAL)

In the June quarter 2010, the highest All sectors quarterly movement was recorded by Mining (1.4%) and the lowest quarterly movement was recorded by both Transport, postal and warehousing and Other services (0.2%).

Increases through the year ranged from 1.7% for Wholesale trade to 4.7% for Electricity, gas, water and waste services. All industries with the exception of Electricity, gas, water and waste services and Health care and social assistance recorded lower through the year movements in the year to June quarter 2010 than in the year to June quarter 2009.

In the Private sector, the through the year movement of 1.7% for Wholesale trade was the lowest of all industries this quarter and was the lowest for this industry since the commencement of the series.

In the Public sector, quarterly movements in the June quarter 2010 ranged from 0.2% for Professional, scientific and technical services to 0.6% for Health care and social assistance. The lowest through the year movement (3.9%) was recorded by both Public administration and safety and Education and training, while the highest (5.5%) was recorded by Electricity, gas, water and waste services.


NATIONAL MINIMUM WAGE INCREASES

On 1 July 2009 Fair Work Australia began operations as part of a new national workplace relations system underpinned by the Fair Work Act 2009. On 3 June 2010 Fair Work Australia announced its first annual minimum wage decision: an increase of $26 a week, effective from 1 July 2010. The increase in award minimum wages is most likely to affect the wage price index in the September quarter 2010. Increases may flow through into the December quarter as employers may not have had the opportunity to process pay increases prior to the September quarter survey reference date, of the last pay period ending on or before 20 August 2010.


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