Salary growth jumps for new hires, look for figures on the announced salary schedule

The new data confirms an old adage: The best way to get a big pay raise is probably to find a new job.

Figures from Australia’s largest job market, Seek, which currently hosts more than 200,000 job advertisements a month, show advertised wages rose 4.1 per cent over the year to July.

Pay rates offered for jobs on the platform rose 0.4 percent in July, a similar rate to the previous two months, putting annualized wage growth at a rate just below below 5 percent.

That’s much stronger than the official Australian Bureau of Statistics wage price index, which showed annual wage growth of just 2.6 per cent for the year to June.

Seek senior economist Matt Cowgill said it’s no surprise that advertised pay rates are growing faster than those of people staying in the same job.

“I would expect to see advertised wages respond more and more quickly to changes in economic conditions and broader changes in the labor market,” he told ABC News.

“When things get worse, as they did during 2020, [employers are] they are not going to reduce the salary of their current staff, but they might be much more willing and able to reduce, or at least restrict, the salary increase they offer to new employees. And that’s what we saw in our data.

“And similarly, as the job market recovered and things started to pick up through 2021, advertised wage growth rose much higher and faster than overall wages and salaries as measured by ABS.”

Cowgill said there’s no guarantee that announced wage growth will eventually be matched by wage growth for all workers, but it’s a positive sign.

“The uptick in announced wage growth that we have seen makes me hope that the wage price index will continue to pick up,” he said.

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