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1301.0 - Year Book Australia, 2003  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 24/01/2003   
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Contents >> Labour >> Level of earnings

Data on the level of earnings reflect the variations within different population groups, and across industries and occupations, providing a more detailed picture of their comparative experiences. Differences in earnings are also of interest in reflecting the strength of labour demand and supply.

The AWE provides an estimate of the gross weekly earnings paid to employees by measuring earnings during a one-week reference period in the middle month of a quarter (excluding irregular earnings not related to the reference period).

The AWE collects three types of earnings data. Average weekly ordinary-time earnings for full-time adult employee jobs (commonly referred to as AWOTE) relate to that part of total earnings attributable to award, standard or agreed hours of work. A second measure of full-time adult total earnings includes both ordinary-time and overtime pay. A third measure includes all earnings (both full-time and part-time) for all employees (both adult and junior). The focus on adult full-time jobs reduces the variability of the measure, and can be used to provide an indication of how underlying earning levels are changing over time.

Graph 6.42 shows AWOTE from February 1992 to February 2002. In dollar terms, male earnings increased more than female earnings in the 10 years to February 2002 (male earnings increased by $285.30 to $910.50 whereas female earnings increased by $248.20 to $772.10). In February 2002, female earnings were at 85% of male earnings. This represents a slight increase from 84% recorded in February 1992.

Graph - 6.42 Average weekly ordinary-time earnings(a)



As shown in table 6.43, the difference between male and female average weekly earnings was least for AWOTE (females earned 85% of the male figure of $910.50) and greatest for All employees total earnings (females earned 66% of the male figure of $823.30). The latter difference reflects the inclusion of part-time employees, as a greater proportion of female employees work part-time. In 2001-02, 45% of female employees worked part-time compared to 14% of male employees.


6.43 AVERAGE WEEKLY EARNINGS - February 2002

Males
Females
Persons
$
$
$

Full-time adult ordinary-time earnings
910.50
772.10
860.50
Full-time adult total earnings
961.80
783.80
897.50
All employees total earnings
823.30
543.10
687.60

Source: Average Weekly Earnings, Australia, February 2002 (6302.0).


Table 6.44 displays the male and female average weekly ordinary-time earnings for full-time adults by state in February 2002. Males recorded higher average weekly earnings than females across all states, although the degree of difference between male and female earnings varied by state. The smallest difference between male and female earnings occurred in South Australia with females earning 89% of the corresponding male figure of $831.00, and the largest difference was in Western Australia with female earnings 79% of male earnings of $927.30.


6.44 AVERAGE WEEKLY EARNINGS - February 2002

New
South
Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
Northern Territory
Australian Capital Territory
Australia
Full-time adult ordinary-time earnings
$
$
$
$
$
$
$
$
$

Males
960.10
903.00
847.20
831.00
927.30
830.50
869.90
1,014.90
910.50
Females
802.50
777.90
725.30
741.80
736.70
716.10
757.40
874.00
772.10
Persons
901.60
860.00
802.20
801.50
859.20
788.80
836.60
951.90
860.50

Source: Average Weekly Earnings, Australia, February 2002 (6302.0).


The Mining industry recorded the largest average weekly ordinary-time earnings for full-time adults in February 2002 of $1,370.50. The industry with the lowest average was Retail trade, with earnings of $643.50, followed closely by Accommodation, cafes and restaurants ($669.30).

Earnings by industry followed similar trends for both males and females, although males earned more on average in every industry (graph 6.45). Full-time adult females earned approximately two-thirds of male full-time adult ordinary-time earnings in the Finance and insurance industry (66%), rising to approximately 91% in the Retail trade industry.

Graph - 6.45 Average weekly ordinary-time earnings(a), By industry(b) - February 2002



Data on average weekly earnings are also available from the biennial EEH survey. This survey provides additional classifications of the data, such as category of employee, type of earnings and occupation. Average weekly total earnings for full-time adult employees by occupation are presented in graph 6.46. For both males and females, Elementary clerical, sales and service workers earned the lowest average weekly earnings of all the occupations ($682 for males and $561 for females), whereas the highest earnings were for Managers and administrators ($1,356 for males and $1,146 for females).

Men had higher average earnings than women in each occupation. For full-time adult employees, the proportional difference between male and female average weekly total earnings was smallest for Managers and administrators (average earnings of females were 85% those of males) and greatest for Tradespersons and related workers (73%).

Graph - 6.46 Average weekly total earnings(a), By occupation(b) - May 2000



The earnings level of a worker is a function of the employer's demand for labour, the availability of suitably qualified workers in the labour market and the skill level of the individual worker. For many occupations, there is a relationship between average weekly earnings for full-time employees and the unemployment rate.

Graph 6.47 plots average weekly earnings for full-time employees against a scaled unemployment rate. In May 2000, it appeared that a low unemployment rate for an occupation tended to be associated with a higher level of average weekly earnings. Managers and administrators, Professionals and Associate professionals had the highest average weekly earnings and the lowest unemployment rates, while Tradespersons had lower wages and relatively high unemployment. However, this relationship does not always hold, for example, Intermediate production and transport workers had relatively high average weekly earnings ($761), yet also had the second highest unemployment rate (4.4%).

Graph - 6.47 Average weekly earnings(a) and unemployment(b) rate(c), By occupation(d) - May 2000



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