Changes in the price of labour are derived from quality adjusted average hourly rates of pay (excluding bonuses) of a representative sample of employee jobs. These data are compiled to form the WCI, which is published by the ABS each quarter. The WCI is a 'pure' price index which measures changes over time in wage and salary costs in the Australian labour market. The WCI is unaffected by changes in the quality and quantity of work performed.
As shown in table 6.48, increases in the indexes for total hourly rates of pay excluding bonuses varied across sectors and across states and territories. In the 12 months to March 2002, public sector wages grew at 3.4% and private sector wages grew at 3.1%. The percentage growth (from the corresponding quarter of the previous year) of public sector wages has been higher than the growth in private sector wages since the March quarter 2000.
For the states, the highest annual percentage increase in wages from the March quarter 2001 to the March quarter 2002 was recorded by Victoria (3.4%) and the lowest was recorded by Western Australia (2.8%). Tasmania recorded the smallest annual growth in the private sector WCI (2.8%), although it recorded the largest growth in the public sector WCI (4.3%).
6.48 TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES, By sector
|
| Index numbers(a) | Percentage change from corresponding quarter of previous year |
|
| |
State/territory | March
quarter 2001 | June
quarter 2001 | September
quarter 2001 | December
quarter 2001 | March
quarter 2002 | March
quarter 2002 |
|
PRIVATE |
|
New South Wales | 112.0 | 112.7 | 114.2 | 114.9 | 115.6 | 3.2 |
Victoria | 111.1 | 112.1 | 113.6 | 114.2 | 114.9 | 3.4 |
Queensland | 110.7 | 111.1 | 112.1 | 113.1 | 113.9 | 2.9 |
South Australia | 110.5 | 111.0 | 112.2 | 113.1 | 114.1 | 3.3 |
Western Australia | 111.9 | 112.8 | 113.4 | 114.2 | 115.1 | 2.9 |
Tasmania | 109.3 | 109.8 | 111.0 | 111.7 | 112.4 | 2.8 |
Northern Territory | 109.5 | 109.7 | 111.3 | 112.1 | 112.7 | 2.9 |
Australian Capital Territory | 111.6 | 112.1 | 113.6 | 114.2 | 115.0 | 3.0 |
Australia | 111.4 | 112.1 | 113.4 | 114.1 | 114.9 | 3.1 |
|
PUBLIC |
|
New South Wales | 114.1 | 114.5 | 115.6 | 116.1 | 117.9 | 3.3 |
Victoria | 111.7 | 112.7 | 113.6 | 114.1 | 115.6 | 3.5 |
Queensland | 112.9 | 114.2 | 115.6 | 115.9 | 116.5 | 3.2 |
South Australia | 112.7 | 113.0 | 113.8 | 116.1 | 116.8 | 3.6 |
Western Australia | 111.2 | 111.5 | 112.5 | 113.4 | 114.5 | 3.0 |
Tasmania | 109.8 | 111.2 | 112.5 | 112.9 | 114.5 | 4.3 |
Northern Territory | 111.7 | 111.7 | 112.1 | 115.5 | 115.8 | 3.7 |
Australian Capital Territory | 110.0 | 110.3 | 112.0 | 112.7 | 113.1 | 2.8 |
Australia | 112.6 | 113.3 | 114.4 | 115.1 | 116.4 | 3.4 |
|
ALL SECTORS |
|
New South Wales | 112.5 | 113.1 | 114.5 | 115.2 | 116.1 | 3.2 |
Victoria | 111.2 | 112.2 | 113.6 | 114.2 | 115.0 | 3.4 |
Queensland | 111.2 | 111.9 | 113.0 | 113.9 | 114.6 | 3.1 |
South Australia | 111.1 | 111.6 | 112.6 | 113.9 | 114.8 | 3.3 |
Western Australia | 111.8 | 112.5 | 113.2 | 114.0 | 114.9 | 2.8 |
Tasmania | 109.5 | 110.3 | 111.5 | 112.1 | 113.1 | 3.3 |
Northern Territory | 110.3 | 110.5 | 111.6 | 113.3 | 113.9 | 3.3 |
Australian Capital Territory | 110.6 | 111.0 | 112.6 | 113.3 | 113.8 | 2.9 |
Australia | 111.7 | 112.4 | 113.6 | 114.4 | 115.2 | 3.1 |
|
(a) Base of each index: September Quarter 1997 = 100.0. |
Source: Wage Cost Index, Australia (6345.0). |
For Australia, the annual wages growth to March 2001 was greater than the annual growth to March 2002 (3.7% compared to 3.1%). In both periods, annual wages growth for Professionals (4.3% to March 2001 and 3.5% to March 2002) was greater than the growth for other occupations. As shown in graph 6.49, in March 2002 Advanced clerical and service workers (2.4%) and Elementary clerical and service workers (2.5%) recorded the lowest annual growth rates.
Annual growth by industry is shown in graph 6.50. Although the annual growth rate of the WCI was lower to March 2002 than for the previous year for some industries, the rate of growth in wages increased in Mining, Electricity, gas and water supply, Finance and insurance, Health and community services, and Personal and other services.
For the 12 months to March 2002, Electricity, gas and water supply had the highest rate of wages growth (4.6%). Transport and storage had the lowest rate of wages growth, of 2.4% for the 12 months to March 2002.