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6345.0 - Labour Price Index, Australia, Dec 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/02/2007   
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PRICE INDEXES AND CONTRACT PRICE INDEXATION

TAKE CARE in using seasonally adjusted and trend estimates. See Explanatory Notes paragraphs 37 to 45.


DECEMBER KEY FIGURES

Sep Qtr 2006 to Dec Qtr 2006
Dec Qtr 2005 to Dec Qtr 2006
% change
% change

Wage Price Index (WPI)
Total hourly rates of pay excluding bonuses
Seasonally Adjusted(a)
Australia
1.1
4.0
Sector
Private
1.0
3.8
Public
1.3
4.5
Original
Australia
1.0
4.0
Sector
Private
0.9
3.7
Public
1.2
4.5

(a) See Explanatory Notes paragraphs 37-45


WPI-Quarterly changes,
Total hourly rates of pay excluding bonuses

Graph: WPI–Quarterly changes, Total hourly rates of pay excluding bonuses

WPI-Annual change: original,
Total hourly rates of pay excluding bonuses - For selected industries
Graph: WPI–Annual change: original, Total hourly rates of pay excluding bonuses—For selected industries



DECEMBER KEY POINTS


TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES

QUARTERLY CHANGE (SEP QTR 2006 TO DEC QTR 2006)

  • The index for all employee jobs in Australia increased by 1.1%, seasonally adjusted.
  • The increases in indexes (in original terms) at the industry level ranged from 0.5% for Cultural and recreational services to 1.6% for Communication services.
  • Increases in the indexes (in original terms) at the occupation level ranged from 0.5% for Tradespersons and related workers to 1.2% for Associate professionals.

ANNUAL CHANGE (DEC QTR 2005 TO DEC QTR 2006)
  • The increase in the seasonally adjusted index through the year to December 2006 for all employee jobs in Australia was 4.0%.
  • Increases in the original indexes through the year to December 2006 at the industry level ranged from 2.0% for Accommodation, cafes and restaurants to 6.5% for Mining, compared with 4.0% for all industries.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER) Release Date
March 2007 16 May 2007
June 2007 15 August 2007
September 2007 14 November 2007



ABS DATA AVAILABLE ON REQUEST

Original indexes are compiled for various combinations of state/territory, sector, broad industry group and broad occupation group. Seasonally adjusted and trend indexes are compiled only for total hourly rates of pay excluding bonuses for each of the private sector, public sector and all sectors. Indexes not included in this publication may be made available on request by telephoning David Taylor on Perth (08) 9360 5151.



FURTHER INFORMATION

More detailed information on the Labour Price Index (LPI) is available in Labour Price Index: Concepts, Sources and Methods, Australia (cat. no. 6351.0.55.001).



INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or David Taylor on Perth (08) 9360 5151.



COMMENTARY


NATIONAL MINIMUM AWARD WAGE INCREASES

The Australian Fair Pay Commission (AFPC) has had responsibility for setting federal minimum award rates since early 2006. The AFPC's first ruling had a date of effect of 1 December 2006 which was after the quarterly survey reference date for the Labour Price Index(Footnote: The reference date for this survey is the last pay period ending on or before the third Friday of the middle month of the quarter, except for bonuses which are collected in respect to those paid during the three month period ending on the third Friday of the middle month of the quarter. For December quarter 2006, the reference date was 17 November 2006.). It is expected that pay changes associated with the AFPC ruling will start to flow through to the wage price index in the March quarter 2007.


The recent changes in industrial relations including the AFPC ruling have affected the seasonally adjusted and trend estimates for the WPI. The impact of these changes affected the size of the seasonal factor for the September quarter 2006. However, the impact has been negligible this quarter. Further impacts are expected on the seasonal factors in upcoming quarters. For further details see paragraphs 37-45 of the Explanatory Notes.



SECTOR

The through the year increase in the seasonally adjusted index for All sectors is 4.0%. The through the year increase for the Private sector (seasonally adjusted) is 3.8%, unchanged from the September quarter 2006 result. The Public sector shows an increase of 4.5% for the same period, compared with a 4.2% change for the year through to September quarter 2006.



INDUSTRY

In original terms, the industries with the highest rate of increase through the year to December quarter 2006 were Mining (6.5%), Electricity, gas and water (6.0%), and Construction (5.1%). The lowest rates of increase were reported in Accommodation, cafes and restaurants (2.0%) and Retail (2.4%).



STATE

In original terms, the states with the highest rate of increase through the year to December quarter 2006 were the All sector and Private sector for Western Australia (4.6% and 4.5% respectively) and the Public sector for Queensland (5.1%).


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