Modest wage growth is expected in Australia despite the highly competitive job market and the rising cost of living.
The wage price index for the second quarter is tipped to lift by around 0.8 per cent in the three months to the end of June, for annual growth of 2.7 per cent.
The Australian Bureau of Statistics will release its quarterly update on wages on Wednesday.
Wages rose 0.7 per cent in the March quarter, with annual growth at 2.4 per cent.
The boost to pay packets is unlikely to do much to ease the cost of living for Australians, with inflation most likely outstripping wages and expected to hit 7.75 per cent by Christmas.
However, NAB economist Taylor Nugent says wage growth should start to increase in the coming quarters as the effects of the tight labour market start to flow through.
The predictions are also in line with the Reserve Bank of Australia’s forecasts on wages.
On Tuesday, the board said more than half of private companies planned to boost wages over the next 12 months.
Australian Chamber of Commerce and Industry head Andrew McKellar also says the fall in real wages will be “temporary”.
The business group boss, due to speak at the National Press Club on Wednesday, says a “grid-locked” industrial relations system was contributing to sluggish wages growth.
By Poppy Johnston in Canberra
Get the latest news, sport, entertainment, lifestyle, competitions and more delivered straight to your inbox with the Canberra Daily Daily Newsletter. Sign up here.
