Agreements data confirms low  wage growth

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Agreements data confirms low wage growth

Average pay rises in new agreements fell from 3.2 per cent to 2.8 per cent per year between September 2018 and December 2018, according to a new report.

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The latest trend report on agreement coverage from the Department of Jobs shows 45,000 fewer people covered by agreements, taking the total number of people covered to 1.15 million – the lowest since 2006. 

Average pay rises in new agreements fell from 3.2 per cent to 2.8 per cent per year between September 2018 and December 2018. 

According to the ACTU the slump was driven by lower pay rises in public sector agreements.

Wage rises for public sector agreements fell to 2.7 per cent, down from 3.3 per cent. Wage rises for private sector agreements approved in the December quarter remained at 3 per cent. 

The level of enterprise agreement making continues to be low, with only 924 agreements approved in the December quarter 2018.

The union body said the data confirmed that the apparent recovery in agreement coverage in the September quarter was an outlier driven by a few large deals.
 
A report from the Centre for Future Work released in December last year showed that the number of people in the private sector covered by agreements at work had fallen by a third since the Liberals formed government in 2013. 
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