FX.co ★ Australia Q2 Annual Wage Growth Remains at 5-Quarter Low

Australia’s seasonally adjusted Wage Price Index rose 3.2% year-on-year in Q2 2025, unchanged from the revised Q1 reading and in line with market expectations. This marked the weakest annual wage growth since Q4 2024. By sector, private-sector wages increased 3.1% (down from 3.2% in Q1), the slowest pace since Q2 2022, while public-sector wages rose 3.4% (steady from 3.4% in Q1), the softest gain since Q4 2024.

On a quarterly basis, wages climbed 0.8%, matching the increase recorded in each of the previous four quarters and aligning with market forecasts. In original terms, information media and telecommunications posted the strongest quarterly rise at 1.2%. At the other end of the spectrum, retail trade and other services recorded the smallest quarterly increase, at just 0.1%.

Over the year, health care and social assistance experienced the fastest wage growth, with a 3.8% increase, while professional, scientific and technical services recorded the weakest annual gain, at 2.5%.