COMMENTARY
WAGE PRICE INDEXES
Australia/Sector (trend)
In the September quarter 2009, the Private sector wage price index rose by 0.7% compared to 1.0% for the Public sector, the All sectors index recorded a quarterly movement of 0.7%. The All sectors quarterly movement of 0.7% was the equal lowest in the history of the series. The last time a quarterly movement of 0.7% was recorded was in the March quarter 2000.
Public sector movements were greater than the Private sector for both the quarter and the year through to September quarter 2009. The All sectors through the year movement of 3.4% was the lowest since the December quarter 2002, when 3.4% was also recorded as the through the year movement.
Since the December quarter 2008, the Private sector and Public sector through the year movements have diverged. In the September quarter 2009, the Private sector through the year movement was 3.1% while the Public sector through the year movement was 4.5%.
State/Territory (original)
The highest quarterly movement was recorded by Tasmania (1.4%) and the lowest by Victoria, South Australia and the Northern Territory (all 0.7%). Through the year increases ranged from 3.0% for Victoria to 4.2% for Tasmania.
The Private sector in each state and territory recorded a lower quarterly increase in the September quarter 2009 than in the September quarter 2008 with the exception of Tasmania where there was a higher quarterly movement (1.7% for the September quarter 2009 compared to 1.3% for the September quarter 2008). The lowest September quarter 2009 quarterly increase in the Private sector was recorded by the Australian Capital Territory (0.4%). The highest quarterly increase in the September quarter 2009 was recorded by Tasmania (1.7%).
In Victoria, the Private sector through the year movement for September quarter 2009 was 2.8%. This was the first time since the June quarter 2000 that a through the year movement has been below 3.0% for this state.
The Public sector quarterly movement for New South Wales was 2.1%. This was the highest of all the states and territories in the September quarter 2009. South Australia recorded the lowest quarterly movement (0.6%) in the September quarter 2009. The highest through the year movement in the September quarter 2009 for the Public sector was 6.2% in Western Australia and the lowest was 3.6% in Queensland.
Industry (original)
September quarter 2009 data are the first issue of industry indexes on an ANZSIC 2006 basis. Previous issues were based on the 1993 version of ANZSIC. Indexes for previous periods have been reproduced by reclassifying the businesses that reported data in earlier periods to the appropriate industry division of ANZSIC 2006. The commentary below makes reference to previous period quarterly and through the year changes, now on an ANZSIC 2006 basis, which can be sourced from this publication or in the corresponding tables on the ABS website.
In the September quarter 2009, Mining, Wholesale trade, Financial and insurance services and Education and training recorded the lowest quarterly movements of any industry (all 0.5%), Public administration and safety and Health care and social assistance recorded the highest (both 1.6%).
Increases through the year ranged from 2.2% for Financial and insurance services to 4.6% for Public administration and safety.
The Private sector quarterly change for the Mining industry (0.5%) was the fourth quarter in which the quarterly change was lower than for the corresponding quarter of the previous year. The through the year movement for Mining, Private sector was 3.7%, the lowest for this industry since the September quarter 2004 (3.4%).
The highest Private sector quarterly movement of any industry in the September quarter 2009 was 1.5% recorded by the Transport, postal and warehousing industry. This was the highest quarterly movement recorded by this industry.
In the Public sector, quarterly movements in the September quarter 2009 ranged from 0.4% for Education and training to 2.4% for Health care and social assistance. The quarterly movement of 2.4% for Health care and social assistance was the highest recorded for this industry since the September quarter 2006 (2.7%).
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 seen in the March quarter 2007 wage price index. The 2007 and 2008 decisions each 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.
NON-WAGE PRICE INDEXES
Annual and public holiday leave
The change from the previous financial year for All sectors for 2008-09 was -0.3%. Changes in this index generally reflect wages growth and variations in public holiday entitlements. New South Wales recorded the largest decrease in the change from the previous financial year for 2008-09 (-3.3%) due to two fewer public holidays in 2008-09 compared to 2007-08.
Superannuation
The change from the previous financial year for All sectors for 2008-09 was 3.7% compared to 4.4% for 2007-08. No changes to superannuation legislation occurred in 2008-09 so changes in this index mostly reflected increases in wages and changes in annual leave and public holiday entitlements.
Payroll tax
The change from the previous financial year for All sectors for 2008-09 was 2.0%. Western Australia had the highest increase in the change from the previous financial year for 2008-09 (5.9%) while South Australia had the largest decrease in the change from the previous financial year for 2008-09 (-2.2%).
Workers' compensation
The change from the previous financial year for All sectors for 2008-09 was -1.0%. Western Australia recorded the largest decrease in the percentage change from the previous financial year for 2008-09 (-10.8%) of all states and territories.
LABOUR PRICE INDEX
The change from the previous financial year for All sectors in 2008-09 was 3.5%. This was lower than the change from the previous financial year in 2008-09 for the wage price index (4.0%).
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