The ABS' wage price index moved up to an annualised rate of 2.2% in September, edging higher but still lagging behind inflation.
Wages grew 0.6% over the September quarter, and the annualised rate now represents a more 'normal' pre-pandemic pattern according to the ABS.
ABS' head of price statistics Michelle Marquardt explained the reasons for the results.
"Wage and salary reviews around the end of the financial year, scheduled enterprise agreements and annual award rises all contributed to growth. Pockets of wage pressure continued to build for skilled construction-related, technical and business services roles, leading to larger ad hoc rises as businesses looked to retain experienced staff and attract new staff," Ms Marquardt said.
Inflation over the same period edged upwards to an annualised rate of 3.0%, implying a real wages slump of 0.8%.
The private sector led the annualised wage rise, up 2.4% - ahead of the public sector (+1.7%) given many jobs in the public arena still face wage freezes.
That said, this was the first public sector annual wage increase since the 2020 March quarter.
By sector, quarterly wage growth was led by the professional, scientific and technical services industry - up 1.3%.
By state, ACT led the quarterly growth up 1.0%, and annually, it was Tasmania - up 2.7%.
The uncomfortable wage talk
The ABS also now reports on the frequency of wage increases for jobs pre-covid compared to now.
It found over the past decade the index would see 35 to 40% of jobs record a wage rise in the September quarter.
Since covid, it has been much lower - in the September quarter 2020, the figure was around 20% attributed to a postponement of wage discussions, and wage freezes.
September 2021, according to the ABS, marks a return to the pre-covid range.
Westpac economist Justin Smirk said the talk about wage negotiation was overblown.
"There has been a lot of press lately of bonus being paid to entice experienced workers by various employers," Mr Smirk said.
"It appears that the use of bonus are, at this stage, not as widespread as reported.
"While wages have indeed lifted in industries where labour shortages are more pronounced, we are yet to see broader wage gains.
"What will be critical is how higher wage outcomes in these sectors, via individual bargaining arrangements, spread to the minimum wage and enterprise bargaining."
"Wages rose 2.2% in the past year, outpaced by inflation" was originally published on Savings.com.au and was republished with permission.