Australia's Wage Growth Hits Four-Year Low Amid Cost-of-Living Crisis

Australian workers are facing a cost-of-living squeeze as wage growth slumps to its lowest level in four years, according to new data from the Australian Bureau of Statistics (ABS). The average weekly ordinary time earnings for full-time adults rose by only 1.6 per cent over six months to May, with annual wage growth slowing to 3.7 per cent.

The ABS reported that public sector workers fared better than those in the private market, with a 2.3 per cent increase in average weekly earnings compared to 1.4 per cent for private sector workers. Transport and warehousing workers saw the strongest six-month wage growth at 4.3 per cent.

The news comes as the Reserve Bank of Australia (RBA) confirmed it would hold interest rates steady, but warned that inflation is not expected to hit its target range until June 2028. RBA Governor Michele Bullock said further rate hikes have not been ruled out, citing high inflation's impact on vulnerable Australians.