The growth in average weekly earnings for Aussies in the workforce has slowed in the past six months as the RBA and big banks expect economic growth to continue to be subdued in 2026.
The average Aussie worker is earning $2,083.70 a week, according to new data released today by the Australian Bureau of Statistics (ABS). Across a full year, that equates to a little more than $108,000.
Weekly earnings have seen a 3.7 per cent increase over the year to May, 2026. But the past six months have accounted for just 1.6 per cent of growth.
“Growth in average weekly earnings for full-time adults for the six months to May 2026 was 1.6 per cent. This was the lowest six-monthly growth since May 2022,” said ABS head of labour statistics Sean Crick.
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“Annual growth to May 2026 was 3.7 per cent which was the lowest annual increase since November 2022,” he added.
Over that same period, inflation in Australia came in at 3.8 per cent, meaning in real terms, workers are going slightly backwards and losing purchasing power.
The biggest growth came from within the public sector, improving at nearly a full percentage point more compared to workers in the private sector in the past six month.
“Public sector average weekly earnings rose by 2.3 per cent while the private sector rose by 1.4 per cent,” Crick said.
Reacting to the data, Treasurer Jim Chalmers said wage earners have seen $300 in extra earnings in the last four years as inflation has continued well above the RBA’s 2-3 per cent target throughout the period.
Unions have been pushing hard for pay rises in recent months. It was reported this week that Victorian teachers could see a one-off $2,000 bonus after recently rejecting a 28.3 per cent pay rise over four years in ongoing wage disputes.
The federal government yesterday introduced legislation to lock in a 15 per cent pay rise for early childhood education and care workers.
Meanwhile a new Fair Work Commission order this week means delivery driver and rider workers in Australia will be paid a minimum rate of $31.30 an hour.
The average weekly income for all employees, not just full-time or ‘ordinary hour’ workers, is $1,579.20, according to the ABS data.
The weekly average earnings for all employees is $1,579.20. ยท ABS
Men, on average, are earning more than women but the gap has fallen to its lowest point of 11.3 per cent, while overall full-time earnings have risen a little more than 36 per cent in the past decade.