Aussies hit by four-year wage slump in fresh cost-of-living blow

Australian full-time workers are facing a deepening cost-of-living squeeze, with wage growth slumping to its lowest level in four years. Data from the Australian Bureau of Statistics (ABS) shows average weekly ordinary time earnings for full-time adults rose 1.6% to $2083.70 in the six months to May. Annual wage growth to May was 3.7%, marking the lowest annual increase since November 2022. ABS head of labour statistics Sean Crick noted public sector workers fared better than private sector workers, with public sector earnings rising by 2.3% and private sector by 1.4%. Transport, postal, and warehousing workers recorded the nation’s strongest six-month wage growth at 4.3%, followed by wholesale trade at 3.2%. Queensland led all states and territories with a 2.5% increase. The gender pay gap in average weekly ordinary full-time earnings fell to a record low of 11.3%, down from 11.5% in November 2025. While 3.7% annual wage growth appears close to 3.8% inflation, families are still struggling due to high household essentials costs. Private sector wage growth at 1.4% over six months is insufficient to offset inflation. The Reserve Bank of Australia (RBA) confirmed its cash rate at 4.35%, with updated forecasts showing inflation not expected to reach its 2–3% target until June 2028. Borrowing costs are projected to remain high around 4.4% to 4.5% through 2027 and 2028, delaying rate cuts. RBA Governor Michele Bullock warned further rate hikes may be needed if inflation persists, emphasizing that high inflation disproportionately affects vulnerable Australians.