1301.0 - Year Book Australia, 2002  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 25/01/2002   
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Contents >> Labour >> Changes in the price of labour

Currently the ABS compiles and publishes a quarterly index, the Wage Cost Index (WCI), which measures changes in the price of the wage and salary component of labour services. Development is continuing towards a Labour Price Index, which will include, in addition to wages and salaries, changes in the price of 'non-wage' components (e.g. superannuation and workers' compensation) which contribute to the cost to employers of employing labour. It is expected that the Labour Price Index will be published from 2004.

The WCI is a 'pure' price index which measures changes over time in wage and salary rates of pay for employee jobs, unaffected by changes in the quality and quantity of work performed. Index numbers in the WCI are compiled from hourly prices, i.e. quality adjusted hourly wage and salary rates of pay, for a representative sample of employee jobs within a sample of employing organisations. To enable the WCI to measure changes in the price of labour over time, data are collected for a sample of individual jobs common between consecutive quarters. Only those jobs that have a price derived in both the current and previous quarters (i.e. matched jobs) contribute to index calculations. Thus, unlike other ABS earnings measures such as the quarterly Average Weekly Earnings series, the WCI does not measure changes in average (per employee) wage payments.

As shown in table 6.42, increases in the indexes for total hourly rates of pay excluding bonuses varied across sectors and across States and Territories. At the all sectors level, the annual percentage increase from the June quarter 2000 to the June quarter 2001 for Australia was 3.7%. The increase for the public sector at 3.8% was slightly higher than for the private sector at 3.7%.

The annual percentage increases from the June quarter 2000 to the June quarter 2001 ranged from 2.8% for the Northern Territory to 4.2% for Western Australia. The increases for the private sector ranged from 2.7% for the Northern Territory to 4.4% for Western Australia, and for the public sector ranged from 2.6% for the Northern Territory to 4.5% for Queensland.


6.42 TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES, State by Sector
Index numbers(a)
Percentage change from corresponding quarter of
previous year
State/Territory
June
quarter
2000
September
quarter
2000
December
quarter
2000
March
quarter
2001
June
quarter
2001
June
quarter
2001
PRIVATE
New South Wales
108.5
110.3
111.0
112.0
112.7
3.9
Victoria
108.3
109.5
110.5
111.1
112.1
3.5
Queensland
107.5
108.6
109.8
110.7
111.1
3.3
South Australia
107.8
108.9
109.8
110.5
111.0
3.0
Western Australia
108.0
109.5
110.2
111.9
112.8
4.4
Tasmania
106.8
107.8
108.7
109.3
109.8
2.8
Northern Territory
106.8
108.3
109.0
109.5
109.7
2.7
Australian Capital Territory
107.8
110.1
110.7
111.6
112.1
4.0
Australia
108.1
109.5
110.4
111.4
112.1
3.7
PUBLIC
New South Wales
110.7
112.1
112.7
114.1
114.5
3.4
Victoria
108.0
109.2
110.0
111.7
112.7
4.4
Queensland
109.3
110.3
111.5
112.9
114.2
4.5
South Australia
109.0
109.8
110.9
112.7
113.0
3.7
Western Australia
107.8
108.5
109.4
111.2
111.5
3.4
Tasmania
107.0
108.7
109.3
109.8
111.2
3.9
Northern Territory
108.9
109.2
111.5
111.7
111.7
2.6
Australian Capital Territory
106.6
108.2
109.1
110.0
110.3
3.5
Australia
109.1
110.3
111.2
112.6
113.3
3.8
ALL SECTORS
New South Wales
109.0
110.7
111.3
112.5
113.1
3.8
Victoria
108.3
109.4
110.4
111.2
112.2
3.6
Queensland
108.0
109.0
110.3
111.2
111.9
3.6
South Australia
108.1
109.1
110.1
111.1
111.6
3.2
Western Australia
108.0
109.3
110.0
111.8
112.5
4.2
Tasmania
106.9
108.1
108.9
109.5
110.3
3.2
Northern Territory
107.5
108.6
109.9
110.3
110.5
2.8
Australian Capital Territory
107.0
108.9
109.8
110.6
111.0
3.7
Australia
108.4
109.7
110.6
111.7
112.4
3.7

(a) Base of each index: September Quarter 1997 = 100.0.

Source: Wage Cost Index, Australia (6345.0).


As illustrated in table 6.43, the indexes also varied across industries. The annual percentage increases from the June quarter 2000 to the June quarter 2001 ranged from 2.4% for Retail trade to 4.8% for Property and business services.

6.43 TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES, By Industry(a)
Index numbers(b)
Percentage change from corresponding quarter of previous year
Industry
June
quarter
2000
September
quarter
2000
December
quarter
2000
March
quarter
2001
June
quarter
2001
June
quarter
2001
Mining
107.2
108.4
108.8
110.1
111.0
3.5
Manufacturing
108.9
110.0
111.1
112.3
113.0
3.8
Electricity, gas and water supply
109.9
111.3
112.3
113.5
114.5
4.2
Construction
109.8
111.5
112.2
113.3
114.4
4.2
Wholesale trade
106.8
108.8
109.7
110.3
111.1
4.0
Retail trade
106.6
107.6
108.4
108.9
109.2
2.4
Accommodation, cafes and restaurants
106.2
108.2
109.0
109.4
109.7
3.3
Transport and storage
107.1
108.5
109.3
110.3
110.7
3.4
Communication services
108.4
108.7
109.5
112.1
112.1
3.4
Finance and insurance
109.9
110.8
111.8
112.9
113.9
3.6
Property and business services
109.4
111.4
112.6
113.9
114.7
4.8
Government administration and defence
108.5
109.7
110.9
111.7
112.1
3.3
Education
108.8
110.3
110.7
112.4
113.6
4.4
Health and community services
108.6
109.7
110.6
111.4
112.4
3.5
Cultural and recreational services
106.7
108.1
108.7
109.9
110.3
3.4
Personal and other services
108.3
109.5
110.3
111.2
111.5
3.0
All industries
108.4
109.7
110.6
111.7
112.4
3.7
(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC).
(b) Base of each index: September Quarter 1997 = 100.0.

Source: Wage Cost Index, Australia (6345.0).

Table 6.44 shows the indexes for occupations. The annual percentage increases from the June quarter 2000 to the June quarter 2001 ranged from 3.1% for Intermediate clerical, sales and service workers to 4.5% for Professionals.


6.44 TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES, By Occupation(a)
Index numbers(b)
Percentage change from corresponding quarter of previous year
Industry
June
quarter
2000
September
quarter
2000
December
quarter
2000
March
quarter
2001
June
quarter
2001
June
quarter
2001
Managers and administrators
109.4
110.6
111.4
112.8
113.6
3.8
Professionals
108.9
110.4
111.4
112.8
113.8
4.5
Associate professionals
108.5
109.9
111.0
111.8
112.5
3.7
Tradespersons and related workers
108.3
109.6
110.4
111.4
112.2
3.6
Advanced clerical and service workers
107.7
109.5
110.3
111.1
111.5
3.5
Intermediate clerical, sales and service workers
107.7
109.0
109.7
110.5
111.0
3.1
Intermediate production and transport workers
107.8
108.9
109.8
110.6
111.2
3.2
Elementary clerical, sales and service workers
107.1
108.6
109.2
110.2
110.6
3.3
Labourers and related workers
107.7
109.0
109.9
110.7
111.3
3.3
All occupations
108.4
109.7
110.6
111.7
112.4
3.7
(a) Classified according to the Australian Standard Classification of Occupations (ASCO), Second Edition.
(b) Base of each index: September Quarter 1997 = 100.0.

Source: Wage Cost Index, Australia (6345.0).



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