Following a significant fall between the March and June quarters 2020 with the introduction of wage subsidies and payroll tax waivers, the LPI recorded a rise (2.9%) between June and September quarters 2020. Usually a quarter in which labour costs rise with end of financial year wage reviews, enterprise agreement increases and award wage updates, September quarter 2020 recorded a rise driven by moderate wage rises and the reduction of support programs.
The end of payroll tax waivers in a number of jurisdictions, moderate wage rises, and return of superannuation and leave obligations were offset by small increases in the take up of the JobKeeper wage subsidy which reduced labour costs for businesses.
The private sector reported a rise in labour costs of 3.0% while the public sector recorded a rise of 2.2% in September quarter 2020. Private sector labour costs were influenced by the small increase in the take up of the wage subsidy and further wage reductions, whereas the public sector was not impacted by these offsetting factors.
|Quarterly movement||Through the year movement|
|Sep 2020||Jun 2020||Sep 2020||Sep 2020||Jun 2020|