FX.co ★ Australian Wage Growth Softens to 0.7% in Fourth Quarter of 2024

Australia's Wage Price Index (WPI) recorded a slowdown in growth, climbing only 0.7% in the fourth quarter of 2024, down from a 0.9% rise experienced in the third quarter. The latest data, released on 19 February 2025, indicates a deceleration in wage increases over the recent time period.

The moderation in wage growth could signify various economic pressures or changing market conditions affecting Australian businesses and industries. This quarter-over-quarter comparison provides insights into current economic trends, contrasting the robust growth seen previously, and raising considerations for policy adjustments to sustain living standards and economic stability.

The initial 0.9% increase in wages during the third quarter highlighted more robust labor market conditions; however, the fourth quarter's figures may alert policymakers and businesses to reevaluate strategies to stimulate economic activity and maintain consumer confidence. As the financial landscape evolves, continued scrutiny of wage trends will be vital for guiding economic forecasts and strategies in 2025.