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Average Australian wage touches $2k PW, unemployment dips

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Average full-time weekly earnings for Australian adults have passed the $2000 mark for the first time, according to new figures from the Australian Bureau of Statistics (ABS). The May 2025 survey showed average full-time adult earnings at $2011.40 before tax, up 4.5 per cent from a year earlier.

Sean Crick, ABS head of labour statistics, said: “This is the first time that average weekly ordinary time earnings for full-time adults have been greater than $2,000. The growth of 1.7 per cent in average weekly earnings for full-time adults for the six months to May 2025 was similar to the rise of 1.8 per cent in the Wage Price Index for the same period. Annual growth in May 2025 remained high at 4.5 per cent, a rise of $86.60 a week from May 2024. This was just below the annual growth rate of 4.6 per cent in the year to November 2024.”

The milestone highlights steady wage growth, but many Australians say the lift is failing to match the jump in everyday costs. A survey by the Australia Institute found 72 per cent of respondents felt wages were growing slower than prices, while 53 per cent said their household finances had worsened over the past two years. The Employee Sentiment Index recorded 45 per cent of workers experiencing rising financial strain.

The ABS noted that wage growth was stronger in the private sector, up 4.6 per cent over the year, compared with 3.6 per cent in the public sector. The gender earnings gap narrowed slightly to 11.5 per cent, with women’s earnings growing faster than men’s. “This is the equal lowest gender pay gap in this series, with female average earnings rising faster than male earnings,” Mr Crick said. Average weekly earnings for full-time male workers were $2106.40, compared with $1864.10 for females.

Industry differences remain stark. Mining workers remain the highest paid, earning an average $3174.50 a week. Information media and telecommunications workers followed at $2560.70, while those in accommodation and food services recorded the lowest average at $1459.70. Across states, the Australian Capital Territory topped the list at $2236.60, followed by Western Australia at $2154.70. The lowest averages were recorded in Tasmania ($1793.00) and South Australia ($1894.10).

Despite these earnings gains, cost of living pressures are biting. A Canstar survey reported an 11 per cent rise in the weekly grocery bill for a family of four, climbing from $215 to $240.

Labour market conditions remain relatively firm. The unemployment rate edged down to 4.2 per cent in July after a small increase the previous month. “With employment rising by 25,000 people and the number of unemployed decreasing by 10,000 people, the unemployment rate fell by 0.1 percentage points to 4.2 per cent in July,” Mr Crick said. The figures show full-time employment rose by 60,000, while part-time employment fell by 36,000. Female full-time workers grew by 40,000 and males by 20,000. The female participation rate reached 63.5 per cent, a new record.

While more Australians are working full-time and average wages have crossed a symbolic threshold, rising rents, grocery bills and mortgage barriers continue to erode household budgets. For many, pay packets are heavier but purchasing power feels lighter.


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