Average full-time earnings in Australia have climbed above $108,000 a year, with women recording slightly stronger growth than men and the gender pay gap falling to a new low, according to figures released by the Australian Bureau of Statistics on Thursday.
Average weekly ordinary time earnings for full-time adults reached $2,083.70 in May, up 3.7 per cent over the year and 1.6 per cent over the previous six months. On an annual basis, that works out to about $108,350.
The result gives the Albanese Government fresh ammunition for its argument that wages have strengthened since it came to office, although the figures require some caution. They measure average earnings rather than what a typical worker earns, and the annual increase remained slightly below the 4.0 per cent rise in consumer prices recorded in the year to May.
Treasurer Jim Chalmers, Finance Minister Katy Gallagher and Employment Minister Amanda Rishworth said average weekly full-time earnings had risen by more than $300 a week since Labor came to government.
The claim is supported by the ABS series. Average full-time ordinary earnings were $1,769.80 a week in May 2022, shortly after the federal election, compared with $2,083.70 in May this year, a nominal increase of $313.90 a week, or almost 18 per cent over four years.
The government said average earnings had increased at an annualised rate of 4.2 per cent since it took office, compared with about 2.5 per cent during the previous Coalition government’s period in office. The ABS figures are broadly consistent with that calculation. Average full-time ordinary earnings stood at about $1,421 a week in May 2013 and $1,769.80 in May 2022.
“Helping Australians earn more and keep more of what they earn is a big focus for us and these figures show our policies on wages and the cost of living are making a meaningful difference,” the ministers said.
But the latest numbers also show why nominal wage figures do not tell the full story about household living standards.
Annual consumer price inflation was 4.0 per cent in May, slightly higher than the 3.7 per cent increase in average full-time ordinary earnings over the same period. Inflation subsequently eased to 3.8 per cent in June, but housing costs were 6.8 per cent higher than a year earlier and electricity prices were up 22.4 per cent.
The ABS also warns that changes in average weekly earnings can reflect shifts in who is working, including the mix of full-time and part-time workers, occupations, industries and hours worked. The measure therefore differs from the Wage Price Index, which is designed to track changes in wage rates for jobs.
The most recent Wage Price Index, covering the March quarter, showed wages rising 3.3 per cent over the year. The June quarter Wage Price Index is due to be released on August 19.
The earnings figures nevertheless show a continuing improvement for women.
Average ordinary earnings for full-time women rose 3.8 per cent over the year to $1,934.50 a week, while men’s earnings increased 3.5 per cent to $2,181. That leaves women earning about 11.3 per cent less than men on this measure, down from about 14.1 per cent in May 2022.
The government described the 11.3 per cent gap as a record low and said women had been major beneficiaries of stronger wage growth since 2022.
The ABS cautions that the measure is a broad comparison and does not adjust for differences including occupation and hours worked. It is one of several ways of measuring the gender pay gap.
There was also a marked difference between the public and private sectors. Full-time ordinary earnings averaged $2,263.10 a week in the public sector, where they increased 4.4 per cent over the year, compared with $2,034.10 in the private sector, where growth was 3.5 per cent.
Pay levels varied sharply across industries. Mining remained the highest-paying industry for full-time adults at an average $3,224.20 a week, followed by information media and telecommunications at $2,714.10 and electricity, gas, water and waste services at $2,546. Accommodation and food services recorded the lowest figure at $1,509.90.
There were also substantial differences across the states and territories. Full-time ordinary earnings averaged $2,290.20 a week in the ACT and $2,227.40 in Western Australia. Victoria was below the national figure at $2,041.10, while Tasmania recorded the lowest average at $1,846.30.
The government said boosting wages remained central to its response to cost-of-living pressures, alongside tax cuts and measures aimed at reducing inflation.
The latest figures show workers earning considerably more in dollar terms than four years ago. Whether those larger pay packets translate into a comparable improvement in living standards remains a more complicated question, particularly while the cost of housing, electricity and other household essentials continues to rise.
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