Yahoo Finance Jobs where salaries are rising the fastest
Wage growth for one industry is now outpacing inflation, with advertised salaries up 8.0 per cent, year on year.
Wage growth is slowing after reaching a recent peak but, with increases still “solid”, this could add pressure on the Reserve Bank (RBA) to raise interest rates at least one more time.
Advertised salaries rose by 4.6 per cent over the year to October 2023, SEEK’s latest Advertised Salary Index found, slowing from the 4.8 per cent recorded in both September and August and below the peak of 5 per cent seen in December 2022.
Advertised salaries were up by just 0.3 per cent in October, month on month, down from the previous three months.
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Despite a dip in wage growth, SEEK senior economist Matt Cowgill said the figures could still be cause for concern for the RBA.
“After months of rapid rises, advertised salary growth has returned to where it was in June - solid, but not exceptional,” Cowgill said.
“Advertised salary growth still lags behind inflation, and there’s no sign of an unsustainable wage-price spiral in the data, which is positive. But any wages growth with a 4 in front of it is bound to give the Reserve Bank pause for thought, particularly with sluggish productivity growth. So, it is too early to say if we are out of the woods in terms of future interest rate rises.”
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NAB is forecasting one more rate rise in February next year, which would bring the cash rate to 4.6 per cent. It then thinks the RBA will start cutting rates in November 2024 - revised from August 2024.
Top 12 industries for salary growth
Community services and development had the fastest advertised salary growth, up 8.0 per cent, year on year. This was largely due to Fair Work’s decision to raise minimum wages for aged care workers by 15 per cent from July 1.
Here were the top 12 industries:
Community services and development - up 8.0 per cent
Consulting and strategy - up 6.1 per cent
Advertising, arts and media - up 5.8 per cent
Education and training - up 5.7 per cent
Real estate and property - up 5.5 per cent
Trades and services - up 5.2 per cent
Retail and consumer products - up 5.0 per cent
Design and architecture - up 5.0 per cent
Accounting - up 5.0 per cent
Health care and medical - up 4.8 per cent
Insurance and superannuation - up 4.8 per cent
Mining, resources and energy - up 4.8 per cent
On the other end of the scale, government jobs experienced the weakest advertised salary growth, up just 1.6 per cent. Information and communication technology didn’t fare much better, up 2.0 per cent in the year to October, which SEEK said reflected continued weak labor demand from the sector.
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