labour price index australia

(a) See Explanatory Notes paragraphs 45–46, 49

4.50.6Public

3.50.6Private

Sector

3.70.6 Australia

Original

4.51.0Public

3.60.7Private

Sector

3.90.8 Australia

Wage Price Index (WPI)

Total hourly rates of pay excluding bonuses

Trend(a)

% change% change

Jun Qtr 2008 toJun Qtr 2009

Mar Qtr 2009 toJun Qtr 2009

K E Y F I G U R E S

T O T A L H O U R L Y R A T E S O F P A Y E X C L U D I N G B O N U S E S

Q U A R T E R L Y C H A N G E ( M A R Q T R 2 0 0 9 T O J U N Q T R 2 0 0 9 )

! The index for all employee jobs in Australia increased by 0.8%, in trend terms.

! The increases in indexes (in original terms) at the industry level ranged from 0.2% for

Retail trade and Accommodation, cafes and restaurants to 1.2% for Construction.

A N N U A L C H A N G E ( J U N Q T R 2 0 0 8 T O J U N Q T R 2 0 0 9 )

! The increase in the trend index through the year to June 2009 for all employee jobs in

Australia was 3.9%.

! Increases in the original indexes through the year to June 2009 at the industry level

ranged from 2.7% for Manufacturing to 4.6% for Electricity, gas and water supply.

K E Y P O I N T S

E M B A R G O : 1 1 . 3 0 A M ( C A N B E R R A T I M E ) W E D 1 2 A U G 2 0 0 9

LABOUR PRICE INDEX A U S T R A L I A

6345.0J U N E Q U A R T E R 2 0 0 9

For further informationabout these and relatedstatistics, contact theNational Information andReferral Service on1300 135 070 orKathryn Parlor on Perth(08) 9360 5151.

(a) See Explanatory Notes paras 45-46, 49

WPI–Quarterly changes: Trend (a)Total hourly rates of pay excluding bonuses

Jun2005

Jun2006

Jun2007

Jun2008

Jun2009

%

0

0.4

0.8

1.2

1.6Private sectorPublic sector

WPI–Annual change: originalTotal hourly rates pf pay excluding bonusesFor selected industries, Jun Qtr 2009

MiningManufacturingElec., gas etcConstructionRetail trade

Accom, cafes etcCommunication

Government adminEducation

HealthCultural & rec svces

All industries

0 1 2 3 4 5 6 7%

I N Q U I R I E S

w w w . a b s . g o v . a u

18 August 2010June 2010

19 May 2010March 2010

24 February 2010December 2009

18 November 2009September 2009

RELEASE DATEISSUE (Quarter)FO R T H C O M I N G I S S U E S

Data referenced in the Key Points and Commentary are available from the tables shown

in this publication or in the corresponding tables of previous editions of this publication

on the ABS website <http://www.abs.gov.au>.

DA T A RE F E R E N C E S

More detailed information on the Labour Price Index (LPI) is available in Labour Price

Index: Concepts, Sources and Methods, Australia (cat. no. 6351.0.55.001).

FU R T H E R IN F O R M A T I O N

Original indexes are compiled for various combinations of state/territory, sector and

broad industry group. Seasonally adjusted and trend indexes are compiled only for total

hourly rates of pay excluding bonuses for each of the private sector, public sector and all

sectors. Indexes not included in this publication may be made available on request by

telephoning Kathryn Parlor on Perth (08) 9360 5151 or email

[email protected].

AB S DA T A AV A I L A B L E ON

RE Q U E S T

From the September quarter 2009, the content and format of tables containing the

industry classification will change to reflect the contemporary Australian and New

Zealand Standard Industrial Classification (ANZSIC06). Further information about the

introduction of ANZSIC 2006 can be found in Information Paper: Update on ANZSIC

2006 Implementation for the Labour Price Index, Australia, 2009

(cat.no. 6345.0.55.001).

CH A N G E S IN FU T U R E

IS S U E S

wage price indexWPI

labour price indexLPI

Australian Bureau of StatisticsABSAB B R E V I A T I O N S

B r i a n P i n k

Au s t r a l i a n S t a t i s t i c i a n

2 A B S • L A B O U R P R I C E I N D E X • 6 3 4 5 . 0 • J U N 2 0 0 9

N O T E S

25Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24Appendix 2: Summary of non-wage and labour price indexes . . . . . . . . . . . . . . .23Appendix 1: Distribution of expenditure on wages . . . . . . . . . . . . . . . . . . . . .16Explanatory Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AD D I T I O N A L IN F O R M A T I O N

15Sector by industry, percentage changes: Original10 . . . . . . . . . . . . . . . . . .14Sector by industry, index numbers: Original9 . . . . . . . . . . . . . . . . . . . . .13Australia, states and territories: Original8 . . . . . . . . . . . . . . . . . . . . . . .

I N D E X E S OF OR D I N A R Y T I M E HO U R L Y RA T E S OF PA Y EX C L U D I N G

BO N U S E S

12Sector: Original7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I N D E X E S OF HO U R L Y RA T E S OF PA Y IN C L U D I N G BO N U S E S

11Sector by industry, percentage changes: Original6 . . . . . . . . . . . . . . . . . .10Sector by industry, index numbers: Original5 . . . . . . . . . . . . . . . . . . . . .9Australia, states and territories, public sector: Original4 . . . . . . . . . . . . . . .8Australia, states and territories, private sector: Original3 . . . . . . . . . . . . . . .7Australia, states and territories, all sectors: Original2 . . . . . . . . . . . . . . . . .6Sector: Original, seasonally adjusted and trend1 . . . . . . . . . . . . . . . . . . . .

I N D E X E S OF TO T A L HO U R L Y RA T E S OF PA Y EX C L U D I N G BO N U S E S

TA B L E S OF WA G E PR I C E IN D E X E S

4Commentary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

page

A B S • L A B O U R P R I C E I N D E X • 6 3 4 5 . 0 • J U N 2 0 0 9 3

C O N T E N T S

In the June quarter 2009, Retail trade and Accommodation, cafes and restaurants

recorded the lowest quarterly movements of any industry (0.2%) with Construction

recording the highest (1.2%).

Increases through the year ranged from 2.7% for Manufacturing to 4.6% for Electricity,

gas and water supply.

The Private sector quarterly change for the Mining industry (1.1%) is less than that of the

same quarter last year (2.4%). The June quarter 2008 quarterly and through the year

movements for Mining, Private sector, were the highest ever recorded for these series.

I N D U S T R Y (O R I G I N A L )

The highest quarterly movement was recorded by New South Wales (0.7%) and the

lowest by South Australia and the Northern Territory (both 0.4%). Through the year

increases ranged from 3.5% for Victoria and 4.6% for Western Australia. This is the first

time that the through the year change for Western Australia has been below 5.0% since

the March quarter 2007.

The Private sector in each state and territory recorded a lower quarterly increase in the

June quarter 2009 than in the June quarter 2008 with the exception of the Australian

Capital Territory where there was a higher quarterly movement (0.6% for the June

quarter 2009 compared to 0.3% for the June quarter 2008).

The lowest June quarter 2009 quarterly increase in the Private sector was jointly recorded

by South Australia and Tasmania, both with 0.2%. This is the lowest quarterly increase for

the Private sector in South Australia since the June quarter 1999 (0.1%) and the equal

smallest ever recorded by the Private sector in Tasmania.

In Western Australia, the Private sector wage price index increased by 0.4% in the June

quarter 2009, compared to 1.6% for the June quarter 2008. This is the fourth quarter in a

row for which the quarterly increase has been smaller than the quarter before.

Public sector quarterly movements ranged from 0.2% for Victoria, Queensland, and the

Northern Territory, to 1.1% recorded by Western Australia and Tasmania. The highest

through the year movement for the Public sector was 6.4% in Western Australia, which is

the highest ever through the year movement for the Public sector in that state.

ST A T E / T E R R I T O R Y

(O R I G I N A L )

In the June quarter 2009, the Private sector wage price index rose by 0.7% compared to

1.0% for the Public sector, with the All sectors index recording a quarterly movement of

0.8%.

Public sector movements were greater than the Private sector for both the quarter and

the year through to the June quarter 2009.

The through the year movement for the Private sector for the June quarter 2009 was

3.6%, which is the lowest since the December quarter 2004 (3.5%). In contrast, the

Public sector through the year movements since the June quarter 2008 have been

showing an increasing rate of growth, from through the year movements of 3.8% for the

June quarter 2008 to 4.5% for the June quarter 2009. The All sectors through the year

movement for the June quarter 2009 was 3.9%.

AU S T R A L I A / S E C T O R

( T R E N D )


C O M M E N T A R Y

There has been some variation in the date of effect and timing of Australian Fair Pay

Commission Wage Setting Decisions. The 2006 decision had a date of effect of

1 December 2006, and its impact was mostly upon the March quarter 2007 wage price

index. The 2007 and 2008 decisions had a date of effect of 1 October and affected the

December quarter wage price index in those years.

In July 2009 the Australian Fair Pay Commission decision was to make no change to

minimum wage rates.

NA T I O N A L M I N I M U M

WA G E IN C R E A S E S

In the Manufacturing industry the All sectors quarterly movement of 0.5%, is down from

1.4% in the corresponding quarter last year. The All sectors through the year movement

(2.7%) is the smallest through the year movement for this series since the December

quarter 1999.

Although the Construction industry Private sector quarterly movement (1.2%) was the

highest of any industry this quarter, this was less than that recorded in the June quarter

2008 (1.6%).

The Private sector quarterly movement for the Wholesale trade industry of 1.0% is less

than that recorded in the June quarter 2008 (1.8%) which was the equal highest quarterly

movement recorded by this industry.

The Property and business services All sectors quarterly movement (0.7%) is 0.5 of a

percentage point lower than the June quarter 2008. The All sectors through the year

movement has declined 0.6 of a percentage point from the March quarter 2009 to 4.3%.

The through the year movement for this series peaked at 5.4% in the June quarter 2008.

I N D U S T R Y (O R I G I N A L )

continued


C O M M E N T A R Y continued

(c) Reference base of each index: 2003–04 = 100.0.(a) See Explanatory Notes paragraphs 37–44, 49.(b) See Explanatory Notes paragraphs 45–46, 49.

0.81.00.70.81.00.70.60.60.6June0.91.10.80.81.10.70.71.10.7March

2009

1.01.21.01.21.41.11.21.41.2December1.11.11.00.90.91.01.21.31.1September1.00.91.11.21.01.20.90.51.0June1.00.81.00.90.80.90.90.80.9March

2008

1.00.91.01.00.91.01.00.91.0December1.11.01.01.11.01.01.31.61.2September1.11.11.11.11.11.10.80.60.9June

2007

CH A N G E FR O M PR E V I O U S QU A R T E R (% )

3.94.53.63.84.53.53.74.53.5June4.14.44.04.24.54.14.14.44.0March

2009


2008


2007

CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R (% )

123.4125.2122.8123.4125.2122.7123.1124.8122.6June122.4123.9121.9122.4123.9121.9122.4124.0121.9March

2009


2008


2007


2006

I N D E X NU M B E R S (c)

All SectorsPublicPrivateAll SectorsPublicPrivateAll SectorsPublicPrivate

TREND(b)SEASONALLY ADJUSTED(a)ORIGINAL

Per i od

WAGE PRICE INDEX: TOTAL HOURLY RATES OF PAY EXCLUDING BONUSES,

Secto r1


(a) Reference base of each index: 2003–04 = 100.0.

0.60.60.40.60.50.40.50.50.7June0.71.11.11.10.80.71.00.70.8March



2007


3.74.13.84.34.63.74.13.53.7June4.14.15.14.55.43.94.34.03.9March



2007


4.04.04.54.35.13.94.14.03.82008–094.24.13.93.95.84.74.23.83.82007–084.04.13.94.34.73.94.53.63.82006–07

CH A N G E FR O M PR E V I O U S F I N A N C I A L YE A R (% )

123.1123.9123.5124.0128.5122.7124.4121.9122.0June122.4123.1123.0123.3127.8122.2123.8121.3121.2March




2006

121.8122.4122.0122.5126.9121.5123.0120.7120.62008–09117.1117.7116.8117.5120.7116.9118.1116.1116.22007–08112.4113.1112.4113.1114.1111.6113.3111.8111.92006–07108.1108.6108.2108.4109.0107.4108.4107.9107.82005–06

I N D E X NU M B E R S (a)

Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South

AustraliaQueenslandVictoria

New

South

WalesPe r i od


Al l Secto rs : Or ig ina l2



0.60.60.60.20.40.20.60.60.6June0.71.10.70.60.70.70.80.60.8March



2007


3.54.53.83.94.03.44.03.23.4June4.04.24.84.65.33.94.13.84.0March



2007


3.94.14.74.25.03.84.23.93.92008–094.33.95.13.76.24.84.04.03.82007–083.83.83.84.14.73.74.43.43.62006–07


122.6122.0124.6122.5128.8121.6124.1121.8121.0June121.9121.3123.8122.2128.3121.3123.3121.1120.3March




2006

121.3120.5123.2121.4127.5120.6122.6120.6119.82008–09116.7115.8117.7116.5121.4116.2117.7116.1115.32007–08111.9111.4112.0112.3114.3110.9113.2111.6111.12006–07107.8107.3107.9107.9109.2106.9108.4107.9107.22005–06


Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South


New

South

WalesPe r i od


Pr i va te Secto r : Or ig ina l3



0.60.70.21.11.10.60.20.20.7June1.11.01.41.91.01.21.31.01.0March



2007


4.53.93.74.96.44.54.44.54.1June4.43.95.54.46.14.24.75.13.5March



2007


4.13.94.34.45.74.34.34.73.52008–094.04.22.34.14.44.54.83.13.92007–084.34.34.04.64.54.44.63.94.42006–07


124.8124.9122.0127.0127.4125.7125.4122.3124.9June124.0124.0121.7125.6126.0125.0125.1122.0124.0March




2006

123.1123.4120.5124.7124.8123.9124.2121.1123.22008–09118.2118.8115.5119.4118.1118.8119.1115.7119.02007–08113.6114.0112.9114.7113.1113.7113.6112.2114.52006–07108.9109.3108.6109.7108.2108.9108.6108.0109.72005–06


Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South


New

South

WalesPe r i od


Pub l i c Secto r : Or ig ina l4


(b) Includes those industries not separately listed.(a) Reference base of each index: 2003–04 = 100.0.

123.1122.4121.5120.1118.7121.8117.1112.4108.1All industries

122.2121.8120.6119.7117.2121.1116.0112.0107.6Personal and other services122.4121.8121.2119.3117.7121.2116.7112.0107.9Cultural and recreational services123.5123.0121.9120.0118.7122.1117.6113.3108.4Health and community services126.4125.4123.1122.2121.0124.3119.1114.4109.9Education124.7123.9123.0120.9119.3123.1118.2113.4108.9Government administration and defence123.7122.9122.1120.8118.6122.4116.7111.4106.9Property and business services122.6122.2121.7120.6118.9121.8117.1112.6108.3Finance and insurance118.7118.3118.2116.9115.2118.0114.4110.5106.8Communication services122.7122.0120.8119.2117.6121.2116.1111.6107.3Transport and storage116.5116.3115.2113.5112.7115.4112.1109.0106.2Accommodation, cafes and restaurants120.3120.1119.4117.4116.4119.3115.0110.3107.2Retail trade121.4120.3119.6118.7117.6120.0115.3111.3107.2Wholesale trade128.2126.7125.5124.5122.9126.2120.8115.5110.3Construction127.1126.6125.5123.2121.5125.6120.3115.6110.1Electricity, gas and water supply121.7121.1120.5119.4118.5120.7116.6111.7107.7Manufacturing131.4130.1128.4127.4126.2129.3122.6115.9109.2Mining

AL L SE C T O R S

124.8124.0122.7121.0119.4123.1118.2113.6108.9All industries(b)

125.2124.9123.8122.7119.3124.2118.1113.9109.5Personal and other services122.5122.0121.7119.2117.5121.4117.2112.4108.2Cultural and recreational services123.7123.5121.8119.8118.3122.2117.4113.1107.7Health and community services126.2125.2123.3122.4121.0124.3119.2114.8110.1Education124.7123.9123.0120.9119.3123.1118.2113.4108.9Government administration and defence

PU B L I C

122.6121.9121.1119.7118.4121.3116.7111.9107.8All industries

119.1118.6117.3116.6114.9117.9113.7110.0105.7Personal and other services122.4121.8120.9119.4117.7121.1116.6111.8107.8Cultural and recreational services123.3122.6122.0120.1119.1122.0117.8113.5109.0Health and community services126.9125.9122.8121.8120.9124.4118.6113.6109.4Education123.7122.9122.1120.8118.5122.4116.6111.4106.9Property and business services122.5122.0121.6120.4118.8121.6117.0112.7108.3Finance and insurance117.5117.1117.0115.5114.5116.8113.8110.4105.9Communication services122.0121.6120.2118.9117.2120.7115.5110.8106.7Transport and storage116.4116.2115.1113.4112.7115.3112.0108.9106.1Accommodation, cafes and restaurants120.3120.1119.4117.5116.4119.3115.0110.3107.2Retail trade121.4120.2119.5118.7117.5120.0115.3111.3107.1Wholesale trade128.5127.0125.8124.8123.1126.5121.0115.7110.5Construction127.0126.2125.5122.8120.8125.4119.4114.8109.5Electricity, gas and water supply121.7121.1120.5119.4118.5120.7116.6111.7107.7Manufacturing131.5130.1128.5127.5126.2129.4122.6115.9109.3Mining

PR I V A T E

Jun Qtr

2009

Mar Qtr

2009

Dec Qtr

2008

Sep Qtr

2008

Jun Qtr

20082008–092007–082006–072005–06

QUARTERFINANCIAL YEAR

Indus t r y


Secto r by Indust r y —Index numbers (a ) : Or ig ina l5


(a) Includes those industries not separately listed.

0.60.71.21.23.74.24.04.04.24.0All industries

0.31.00.82.14.33.44.34.43.64.1Personal and other services0.50.51.61.44.04.14.13.94.23.8Cultural and recreational services0.40.91.61.14.03.64.53.83.84.5Health and community services0.81.90.71.04.54.04.04.44.14.1Education0.60.71.71.34.53.94.44.14.24.1Government administration and defence0.70.71.11.94.35.43.94.94.84.2Property and business services0.30.40.91.43.13.74.34.04.04.0Finance and insurance0.30.11.11.53.03.73.33.13.53.5Communication services0.61.01.31.44.33.84.14.44.04.0Transport and storage0.21.01.50.73.42.23.12.92.82.6Accommodation, cafes and restaurants0.20.61.70.93.44.23.23.74.32.9Retail trade0.90.60.80.93.24.63.64.13.63.8Wholesale trade1.21.00.81.34.34.74.34.54.64.7Construction0.40.91.91.44.63.14.24.44.15.0Electricity, gas and water supply0.50.50.90.82.74.34.23.54.43.7Manufacturing1.01.30.81.04.16.75.65.55.86.1Mining

AL L SE C T O R S

0.61.11.41.34.53.84.24.14.04.3All industries(a)

0.20.90.92.84.93.64.35.23.74.0Personal and other services0.40.22.11.44.33.64.33.64.33.9Cultural and recreational services0.21.41.71.34.63.94.94.13.85.0Health and community services0.81.50.71.24.33.83.94.33.84.3Education0.60.71.71.34.53.94.44.14.24.1Government administration and defence

PU B L I C

0.60.71.21.13.54.33.93.94.33.8All industries

0.41.10.61.53.73.04.23.73.44.1Personal and other services0.50.71.31.44.04.24.13.94.33.7Cultural and recreational services0.60.51.60.83.53.44.23.63.84.1Health and community services0.82.50.80.75.04.54.24.94.43.8Education0.70.71.11.94.45.24.05.04.74.2Property and business services0.40.31.01.33.13.54.43.93.84.1Finance and insurance0.30.11.30.92.63.53.82.63.14.2Communication services0.31.21.11.54.14.24.34.54.23.8Transport and storage0.21.01.50.63.32.33.12.92.82.6Accommodation, cafes and restaurants0.20.61.60.93.44.23.23.74.32.9Retail trade1.00.60.71.03.34.53.64.13.63.9Wholesale trade1.21.00.81.44.44.74.34.54.64.7Construction0.60.62.21.75.14.04.45.04.04.8Electricity, gas and water supply0.50.50.90.82.74.34.23.54.43.7Manufacturing1.11.20.81.04.26.65.75.55.86.0Mining

PR I V A T E

Jun Qtr

2009

Mar Qtr

2009

Dec Qtr

2008

Sep Qtr

2008

Jun Qtr

2009

Jun Qtr

2008

Jun Qtr

20072008–092007–082006–07

FROM PREVIOUS QUARTER

FROM CORRESPONDINGQUARTER OFPREVIOUS YEAR

FROM PREVIOUSFINANCIAL YEAR

Indus t r y


Secto r by Indus t r y —Percentage changes : Or ig ina l6


(a) Reference base of each index: 2003–04 = 100.0.(b) A methodological change to the pricing of bonuses and commissions was implemented in March quarter

2006. See paragraph 15 of the Explanatory Notes.

0.70.60.80.70.60.8June0.71.10.60.71.10.6March

20091.11.41.01.11.51.0December1.31.31.21.31.31.2September0.80.50.90.80.50.9June1.00.91.01.00.91.0March

20081.10.91.21.10.91.2December1.51.51.51.51.51.5September1.00.61.11.00.61.1June

2007


3.94.43.63.94.43.6June3.94.43.73.94.43.7March



2007


4.14.24.04.14.24.02008–094.44.14.64.44.14.62007–084.04.23.94.04.33.92006–07


123.6124.7123.2123.6124.7123.2June122.7124.0122.2122.7124.0122.2March




2006

122.2123.1121.8122.2123.1121.82008–09117.4118.1117.1117.4118.1117.12007–08112.4113.5112.0112.4113.5112.02006–07108.1108.9107.8108.1108.8107.82005–06

I N D E X NU M B E R S (a)(b)

All SectorsPublicPrivate All SectorsPublicPrivate

TOTAL HOURLY RATESORDINARY TIME HOURLY RATES

Per i od

WAGE PRICE INDEX: HOURLY RATES OF PAY INCLUDING BONUSES,

Secto r : Or ig ina l7



0.60.60.40.60.50.30.50.50.7June0.81.11.11.10.80.71.00.70.8March



2007


3.84.13.84.34.63.64.13.43.6June4.24.15.14.55.43.94.33.93.9March



2007


4.04.04.54.35.13.84.24.03.82008–094.24.13.83.95.74.84.23.83.82007–084.04.14.04.34.83.94.43.63.82006–07


123.1123.9123.5124.0128.4122.7124.3121.8121.9June122.4123.1123.0123.3127.7122.3123.7121.2121.1March




2006

121.7122.4122.0122.5126.8121.5122.9120.6120.52008–09117.0117.7116.8117.5120.6117.0118.0116.0116.12007–08112.3113.1112.5113.1114.1111.6113.2111.7111.82006–07108.0108.6108.2108.4108.9107.4108.4107.8107.72005–06


Australia

Australian

Capital

Territory

Northern

TerritoryTasmania

Western

Australia

South


New

South

WalesPe r i od

WAGE PRICE INDEX: ORDINARY TIME HOURLY RATES OF PAY EXCLUDING BONUSES,

Al l Secto rs : Or ig ina l8


(b) Includes those industries not separately listed.(a) Reference base of each index: 2003–04 = 100.0.

123.1122.4121.4120.0118.6121.7117.0112.3108.0All industries

122.2121.8120.6119.7117.2121.1116.0112.0107.6Personal and other services122.4121.8121.1119.3117.7121.2116.7111.9107.9Cultural and recreational services123.4123.0121.9119.9118.7122.1117.6113.3108.4Health and community services126.4125.4123.1122.2121.0124.3119.1114.4109.9Education124.6123.9122.9120.8119.3123.1118.2113.3108.8Government administration and defence123.8122.9122.1120.8118.6122.4116.7111.4106.9Property and business services122.6122.1121.7120.6118.9121.8117.1112.6108.3Finance and insurance118.7118.3118.2116.8115.2118.0114.4110.5106.8Communication services122.5121.8120.6119.0117.5121.0116.0111.4107.3Transport and storage116.5116.3115.2113.5112.7115.4112.1109.0106.2Accommodation, cafes and restaurants120.2120.1119.4117.4116.4119.3115.0110.2107.2Retail trade121.5120.3119.6118.8117.6120.1115.3111.3107.2Wholesale trade128.0126.5125.3124.3122.7126.0120.6115.2110.1Construction127.0126.6125.5123.1121.4125.6120.2115.5110.0Electricity, gas and water supply121.5120.9120.2119.2118.4120.5116.4111.5107.6Manufacturing131.4130.0128.4127.4126.1129.3122.5115.9109.2Mining

AL L SE C T O R S

124.7124.0122.7121.0119.4123.1118.2113.6108.9All industries(b)

125.3124.9123.8122.7119.4124.2118.2113.9109.5Personal and other services122.4121.9121.7119.1117.5121.3117.1112.4108.2Cultural and recreational services123.7123.5121.8119.8118.3122.2117.3113.1107.7Health and community services126.3125.2123.3122.4121.0124.3119.3114.8110.1Education124.6123.9122.9120.8119.3123.1118.2113.3108.8Government administration and defence

PU B L I C

122.5121.8121.0119.6118.3121.2116.6111.8107.7All industries

119.0118.5117.3116.6114.9117.9113.7110.0105.7Personal and other services122.4121.8120.9119.4117.7121.1116.5111.7107.8Cultural and recreational services123.2122.6122.0120.1119.1122.0117.8113.4109.0Health and community services126.9126.0122.9121.8121.0124.4118.7113.6109.4Education123.7122.9122.1120.8118.6122.4116.7111.4106.9Property and business services122.5122.0121.5120.4118.7121.6117.0112.6108.3Finance and insurance117.5117.1117.0115.6114.5116.8113.8110.4106.0Communication services121.8121.4120.0118.7117.0120.5115.3110.6106.6Transport and storage116.4116.3115.2113.5112.7115.4112.0108.9106.1Accommodation, cafes and restaurants120.3120.2119.5117.5116.4119.4115.0110.2107.2Retail trade121.5120.3119.6118.7117.6120.0115.3111.3107.2Wholesale trade128.2126.8125.6124.6122.9126.3120.8115.4110.2Construction127.1126.3125.5122.7120.8125.4119.4114.7109.5Electricity, gas and water supply121.5120.9120.3119.2118.4120.5116.5111.6107.6Manufacturing131.4130.1128.4127.4126.2129.3122.5115.9109.2Mining

PR I V A T E

Jun Qtr

2009

Mar Qtr

2009

Dec Qtr

2008

Sep Qtr

2008

Jun Qtr

20082008–092007–082006–072005–06

QUARTERFINANCIAL YEAR

Indus t r y


Secto r by Indust r y —Index numbers (a ) : Or ig ina l9


(a) Includes those industries not separately listed.

0.60.81.21.23.84.24.04.04.24.0All industries

0.31.00.82.14.33.44.34.43.64.1Personal and other services0.50.61.51.44.04.14.13.94.33.7Cultural and recreational services0.30.91.71.04.03.64.53.83.84.5Health and community services0.81.90.71.04.54.04.04.44.14.1Education0.60.81.71.34.44.04.44.14.34.1Government administration and defence0.70.71.11.94.45.43.94.94.84.2Property and business services0.40.30.91.43.13.74.34.04.04.0Finance and insurance0.30.11.21.43.03.73.33.13.53.5Communication services0.61.01.31.34.33.94.04.34.13.8Transport and storage0.21.01.50.73.42.23.12.92.82.6Accommodation, cafes and restaurants0.10.61.70.93.34.33.23.74.42.8Retail trade1.00.60.71.03.34.63.64.23.63.8Wholesale trade1.21.00.81.34.34.74.34.54.74.6Construction0.30.91.91.44.63.24.24.54.15.0Electricity, gas and water supply0.50.60.80.72.64.44.23.54.43.6Manufacturing1.11.20.81.04.26.65.75.65.76.1Mining

AL L SE C T O R S

0.61.11.41.34.43.84.34.14.04.3All industries(a)

0.30.90.92.84.93.74.35.13.84.0Personal and other services0.40.22.21.44.23.64.33.64.23.9Cultural and recreational services0.21.41.71.34.63.94.94.23.75.0Health and community services0.91.50.71.24.43.83.94.23.94.3Education0.60.81.71.34.44.04.44.14.34.1Government administration and defence

PU B L I C

0.60.71.21.13.64.33.93.94.33.8All industries

0.41.00.61.53.63.04.33.73.44.1Personal and other services0.50.71.31.44.04.34.03.94.33.6Cultural and recreational services0.50.51.60.83.43.54.13.63.94.0Health and community services0.72.50.90.74.94.64.24.84.53.8Education0.70.71.11.94.35.43.94.94.84.2Property and business services0.40.40.91.43.23.54.33.93.94.0Finance and insurance0.30.11.21.02.63.53.82.63.14.2Communication services0.31.21.11.54.14.34.24.54.23.8Transport and storage0.11.01.50.73.32.33.13.02.82.6Accommodation, cafes and restaurants0.10.61.70.93.44.33.13.84.42.8Retail trade1.00.60.80.93.34.63.64.13.63.8Wholesale trade1.11.00.81.44.34.74.34.64.74.7Construction0.60.62.31.65.24.04.45.04.14.7Electricity, gas and water supply0.50.50.90.72.64.34.33.44.43.7Manufacturing1.01.30.81.04.16.75.75.65.76.1Mining

PR I V A T E

Jun Qtr

2009

Mar Qtr

2009

Dec Qtr

2008

Sep Qtr

2008

Jun Qtr

2009

Jun Qtr

2008

Jun Qtr

20072008–092007–082006–07

FROM PREVIOUS QUARTER

FROM CORRESPONDINGQUARTER OFPREVIOUS YEAR

FROM PREVIOUSFINANCIAL YEAR

Indus t r y


Secto r by Indus t r y —Percentage changes : Or ig ina l10


7 The wage, non-wage and labour price indexes measure changes over time in the

price of labour unaffected by changes in the quality or quantity of work performed. A

range of procedures have been developed to identify and measure quality and quantity

changes and ensure that only pure price changes are reflected in the indexes.

8 Price-determining characteristics of the jobs are detailed in fixed pricing

specifications and any changes in labour payments due to changes in the pricing

specifications do not contribute to index movements. The following are examples of

changes in price-determining characteristics which are not reflected in index

movements:

! changes in the nature of work performed (e.g. different tasks or responsibilities)

! changes in the quantity of work performed (e.g. the number of hours worked)

! changes in the characteristics of the job occupant (e.g. age, apprenticeship year,

successful completion of training or a qualification, grade or level, experience,

length of service, etc.)

! changes in the location where the work is performed.

DE S I G N OF TH E IN D E X E S

BROAD DESCRIPTION

3 Four wage price indexes are constructed and published quarterly. These indexes

were first compiled for the September quarter 1997, and cover:

! ordinary time hourly rates of pay excluding bonuses index

! ordinary time hourly rates of pay including bonuses index

! total hourly rates of pay excluding bonuses index

! total hourly rates of pay including bonuses index.

In these indexes the term 'bonuses' refers to bonuses and commissions.

4 Four non-wage price indexes are constructed. These are financial year indexes and

were first compiled for the 2001–02 financial year. The non-wage indexes cover:

! annual and public holiday leave

! superannuation

! payroll tax

! workers' compensation.

5 From the individual wage and non-wage components a labour price index can be

constructed. Two versions of the labour price index are produced and, like the non-wage

price indexes, they are financial year indexes (first compiled for 2001–02):

! labour price index excluding bonuses

! labour price index including bonuses.

6 The full set is updated annually in the September quarter LPI publication. In all other

quarters a summary table is published as an appendix to the publication.

PU B L I S H E D IN D E X E S

1 This publication contains indexes measuring changes in the price of labour in the

Australian labour market.

2 The methodology used to construct the wage, non-wage and labour price indexes

(LPI) is similar to that used for other price indexes such as the Consumer Price Index. In

the LPI, index numbers are compiled using information collected from a representative

sample of employee jobs within a sample of employing organisations. Individual indexes

are compiled for various combinations of state/territory, sector (private/public) and

broad industry group. Wage price indexes for broad occupation groups have been

discontinued with the last data in the series relating to the September quarter 2008.

Appendix 3 of the December quarter 2008 edition of this publication outlines where to

find historical data for occupation based indexes. That appendix also contains a

concordance between the old and new publication tables as a result of these series

ceasing. For more detailed information on the methodology used in the construction of

the LPI, refer to Labour Price Index: Concepts, Sources and Methods (cat. no.

6351.0.55.001).

I N T R O D U C T I O N


E X P L A N A T O R Y N O T E S

16 The annual and public holiday leave index is calculated using both ordinary time

hourly wage and salary rates, and the amount of annual and public holiday leave offered

by employers. Pure price changes in either of these variables will reflect in the index. The

index specifically prices leave entitlements and therefore will not show changes due to

fluctuations in the actual amount of leave taken by job occupants.

17 The superannuation index is calculated using ordinary time hourly wage and

salary rates, and the rate of superannuation that is paid by employers. Pure price changes

in either of these variables will be reflected in the index. Superannuation payments equal

to and above the legislated minimum specified in the Superannuation Guarantee Act

1992 are included in the index. Amounts that are salary sacrificed to superannuation are

included in the wage price indexes and not the superannuation index.

NON-WAGE PRICE INDEXES

10 The ordinary time hourly rates of pay indexes that exclude bonuses measure

quarterly changes in ordinary time hourly wage and salary rates. Changes in rates of pay

reflected in these indexes (i.e. pure price changes) arise from a range of sources

including award variations, changes in pay scales, enterprise and workplace agreements,

minimum wage setting, individual contracts and informal arrangements.

11 These indexes are not affected by changes in:

! penalty payments for overtime, shifts, weekends and public holidays (which

fluctuate depending on the number of hours paid at penalty rates)

! allowances (which fluctuate according to how much work is performed under

special work conditions e.g. height, dirt, heat allowances)

! bonus payments (which may, or may not, relate to an individual’s work

performance).

These payments are specifically excluded when calculating ordinary time hourly

wage and salary rates.

12 The effect of rolling ordinary time penalty payments and allowances into ordinary

time hourly rates is excluded from these indexes. However, when overtime penalty

payments are rolled into ordinary time hourly rates, the ordinary time indexes will

increase accordingly.

13 The total hourly rates of pay indexes that exclude bonuses are based on a

weighted combination of ordinary time hourly wage and salary rates (described in

paragraphs 10 and 11) and overtime hourly rates. As a result, the total hourly indexes

reflect changes in both the ordinary time and overtime hourly rates. However, the effect

of changes in the amount of overtime paid at each overtime rate is not shown in these

indexes.

14 Only those indexes that exclude bonuses and commissions are pure price indexes

because bonus and commission payments can reflect changes in the quality of work

performed. No attempt is made to remove this quality element from the indexes that

include bonuses and commissions.

15 A review of the treatment of bonuses and commissions resulted in methodological

changes in the March quarter 2006. Details of these changes and the likely impact on the

indexes that include bonuses and commissions can be found in each of the 2006 editions

of this publication.

WAGE PRICE INDEXES

9 Changes in the price of labour resulting from changes in the composition of the

labour market are also excluded from index movements. To achieve this, price

movements for each segment of the labour market (defined by state/territory, sector and

industry) are combined using expenditure weights that remain constant between

successive weighting base periods.

BROAD DESCRIPTION continued


E X P L A N A T O R Y N O T E S continued

24 Information for the wage price indexes is collected each quarter by mail

questionnaires from a sample survey of approximately 4,800 private and public sector

employers selected from the ABS Business Register. The survey reference date is the last

pay period ending on or before the third Friday of the middle month of the quarter,

except for bonuses which are collected in respect to those paid during the three month

period ending on the third Friday of the middle month of the quarter. In the first quarter

they participate in the survey, each employer selects a sample of jobs from their

workplace(s) using sampling instructions provided by the ABS, and provides information

for these jobs, including detailed pricing specifications. In subsequent quarters they are

asked to provide details of payments made to the current occupants of these same jobs.

It is essential that the same jobs are priced in successive quarters, whether the individual

job occupants are the same or not. Approximately 20,000 matched jobs are priced each

quarter from the selected employers.

DATA COLLECTION

21 The target population of employers for the LPI is all employing organisations in

Australia (private and public sectors) except:

! enterprises primarily engaged in agriculture, forestry or fishing

! private households employing staff

! foreign embassies, consulates, etc.

22 All employee jobs in the target population of employers are in scope of the LPI,

except the following:

! Australian permanent defence force jobs

! non-salaried directors

! proprietors/partners of unincorporated businesses

! persons paid by commission only

! working proprietors/owner managers of Pty Ltd companies

! employees on workers’ compensation who are not paid through the payroll

! ‘non-maintainable’ jobs (i.e. jobs that are expected to be occupied for less than six

months of a year)

! jobs for which wages and salaries are not determined by the Australian labour

market (e.g. most employees of Community Development Employment Programs,

or jobs where the remuneration is set in a foreign country).

23 As such, full-time, part-time, permanent, casual, managerial and non-managerial

jobs are in scope of the LPI. Costs incurred by employers for work undertaken by

self-employed persons such as consultants and subcontractors are out-of-scope of the

LPI, as they do not relate to employee jobs.

SCOPE AND COVERAGE

20 Two labour price indexes (one including bonuses and one excluding them) are

constructed from the individual wage and non-wage components. As with the wage price

indexes, only the labour price index that excludes bonuses is a pure price index because

bonuses tend to reflect, at least partly, changes in the quality of work performed.

LABOUR PRICE INDEXES

18 The payroll tax and workers' compensation indexes are calculated differently to

the other wage and non-wage indexes. As these costs are both levied at the employer

level, the indexes are calculated using total payroll information rather than rates of pay

data. The separate indexes are derived by applying either payroll tax rates/thresholds or

workers' compensation premium rates to the total payroll data. The indexes reflect pure

price changes in total payroll and either changes in the payroll tax rates/thresholds or

workers' compensation premium rates.

19 Data quality concerns exist in relation to the workers' compensation premium rates

for the ACT private sector. Until these concerns are resolved, these data will be imputed

based on industry averages across Australia. Workers' compensation index numbers for

the ACT private sector will not be published separately.

NON-WAGE PRICE INDEXES

continued



31 Index numbers in this publication measure changes in the price of labour between

the commencement of the series and a later period. Index number levels cannot be

compared across states/territories as they do not provide comparative information on

the relative levels of labour costs. Similarly, index number levels cannot be compared

across sectors or industries. The usefulness of index numbers stems from the fact that

index numbers for any two periods can be used to directly calculate the change or

movement in the price of labour between the two periods. These movements can be

compared across states/territories, sectors or industries.

I N T E R P R E T A T I O N OF IN D E X

NU M B E R S

29 In the LPI, as with other price indexes, expenditure weights are used to combine

elementary aggregates into broader level indexes. These weights are derived from

independent estimates of labour costs for each elementary aggregate. The estimates are

sourced from the Major Labour Costs Survey, the Employee Earnings and Hours Survey

and the Census of Population and Housing. The weights are updated for the December

quarter each year to take account of changing employer expenditure patterns for labour

among each segment of the labour market (elementary aggregates). They reflect changes

in the distribution of the number of employee jobs among industries, states/territories

and sectors, as well as changes in labour cost relativities. Appendix 1 shows the

distribution of employers’ expenditure on wages and salaries, as of December quarter

2008.

30 To facilitate comparison of index numbers over time, the published indexes are not

re-referenced (i.e. reset to 100.0) each time this re-weighting occurs. Instead, the series

based on the old expenditure weights and that based on the new weights are linked via

an arithmetic calculation, which is referred to as chaining. This provides a continuous

series from the commencement of the index, while incorporating the updated

expenditure weights.

WEIGHTING

25 The sampling method retains the highest possible common sample of employers

over time, and retains the same sampled jobs within those employers where possible.

However, it is also necessary to ensure the LPI continues to be relevant and

representative over time. For these reasons, the employer sample is refreshed annually

(for the December quarter) in a way that ensures a high proportion of common

selections while allowing new employers to be represented in the sample. Refreshing

the sample also allows the ABS to control the length of time that small businesses are

included in the sample.

26 Between each annual refresh of the employer sample, a small number of employee

jobs will be lost from the survey sample because of the closure of some businesses. In

addition, some jobs in continuing businesses will be replaced in the sample because of

restructuring and other job changes.

27 Annual leave and superannuation information is collected from the same job

sample as that used to construct the wage price indexes. However, data are only

collected annually as part of the June quarter LPI survey. Changes in the job sample due

to factors such as the annual refreshing of the employer sample, together with the

requirement of pricing the same jobs in successive years, reduces the number of

matched jobs used to calculate the annual and public holiday leave index and the

superannuation index compared with the matched jobs underlying the wage price

indexes.

28 Information from administrative and other ABS data sources is used to construct

the payroll tax and workers' compensation indexes, as well as the public holiday

component of the annual and public holiday leave index.

DATA COLLECTION continued



37 Seasonally adjusted estimates are derived by estimating and removing systematic

calendar related effects from the original series. In most economic data these calendar

related effects are a combination of the classical seasonal influences (e.g. the effect of the

weather, social traditions or administrative practices) plus other kinds of calendar related

variation, such as trading day, Easter or the proximity of significant days in the year (e.g.

Christmas). In the seasonal adjustment process, both seasonal and other calendar

related factors evolve over time to reflect changes in activity patterns. The seasonally

adjusted estimates still reflect the sampling and non-sampling errors to which the

original estimates are subject.

38 The total hourly rates of pay excluding bonuses index is the only index of the LPI

that is seasonally adjusted. Institutional effects largely drive the seasonality of this index.

Important factors in determining this seasonality are the timing of effect of agreements,

the length of these agreements, and the timing of significant wage hearings that impact

SE A S O N A L L Y AD J U S T E D

IN D E X E S

35 Index numbers for financial years are calculated as simple (arithmetic) averages of

the four quarterly index numbers for the financial year. As the wage price indexes were

first produced for the September quarter 1997, the first financial year index number that

can be calculated is for 1997–98. Consequently, the first percentage change between

financial years that can be calculated is between 1997–98 and 1998–99. The following

example illustrates the method of calculating the financial year index number for

2008–09:

Total hourly rates of pay excluding bonuses, Australia

Index numbers original (see table 2)

September quarter 2008 120.1

plus December quarter 2008 121.5

plus March quarter 2009 122.4

plus June quarter 2009 123.1

Financial year 2008–09 487.1/4 = 121.8

36 Percentage changes between the index numbers for any two financial years can be

calculated using the method outlined in paragraph 34 above.

FINANCIAL YEAR INDEXES

33 Movements in indexes from one period to another can be expressed either as

changes in index points or as percentage changes. In this publication, percentage

changes are calculated to illustrate three different kinds of movements in indexes:

! movements between consecutive quarters

! movements between corresponding quarters of consecutive years (i.e. changes

'through the year')

! movements between consecutive financial years.

34 The following example illustrates the method of calculating changes in index points

and percentage changes between any two periods:

Total hourly rates of pay excluding bonuses, All Sectors, Australia

Index numbers, trend (see table 1)

June quarter 2009 123.4

less June quarter 2008 118.8

Change in index points 4.6

Percentage change 4.6/118.8 x 100 = 3.9%

INDEX MOVEMENTS

32 The published index numbers have been rounded to one decimal place, and the

percentage changes (also rounded to one decimal place) are calculated from the

rounded index numbers. In some cases, this can result in the percentage change for the

total level of a group of indexes being outside the range of the percentage changes for

the component level indexes. Seasonally adjusted and trend quarterly estimates are

calculated from unrounded original indexes and then rounded to one decimal place.

PERCENTAGE CHANGE AND

ROUNDING



45 Trend is a measure of the underlying direction of a series. The ABS trend estimates

for the wage price index are derived by applying a 7-term Henderson-weighted moving

average to all quarters of the respective seasonally adjusted indexes except the first three

and last three quarters. Trend estimates are created for these quarters by applying

surrogates of the 7-term Henderson weighted moving average to the seasonally adjusted

indexes, tailored to each time series. In general, trend estimates give a better indication

TR E N D ES T I M A T E S

44 More recently, the ABS has implemented improved methods of producing

seasonally adjusted estimates, focused on the application of Autoregressive Integrated

Moving Averages (ARIMA) modelling techniques. ARIMA modelling is a technique that

can be used to extend original estimates beyond the end of a time series. The extended

values are temporary, intermediate values, that are used internally to improve seasonal

adjustment. They do not affect the original estimates and are discarded at the end of the

seasonal adjustment process. The use of ARIMA modelling generally results in a

reduction in revisions to the seasonally adjusted estimates when subsequent data

becomes available. ARIMA modelling in the LPI was introduced in June quarter 2008. For

more information on the details of ARIMA modelling see the feature article 'Use of

ARIMA modelling to reduce revisions' in the October 2004 issue of Australian Economic

Indicators (cat. no. 1350.0).

ARIMA MODELLING

43 The LPI uses a concurrent seasonal adjustment methodology to derive the

adjustment factors. This method uses the original time series available at each reference

period to estimate seasonal factors for the current and previous quarters. Concurrent

seasonal adjustment is technically superior to the more traditional method of reanalysing

seasonal patterns once each year because it uses all available data to fine tune the

estimates of the seasonal component each quarter. With concurrent analysis, the

seasonally adjusted series are subject to revision each quarter as the estimates of the

seasonal factors are improved. In most instances, the only noticeable revisions will be to

the combined adjustment factors for the previous quarter and for the same quarter in

the preceding year as the reference quarter (i.e. if the latest quarter is Qt then the most

significant revisions will be to Qt-1 and Qt-4).

CONCURRENT SEASONAL

ANALYSIS

on rates of pay. A significant institutional change in wage setting arrangements can affect

the relative level (or trend) and seasonality of the index.

39 Prior to 2006, the Australian Industrial Relations Commission (AIRC) handed down

annual Safety Net Review (SNR) decisions which set federal full-time minimum award

rates. Since the commencement of the WPI, the SNR contributed to the relative level of

the wage price index. Most of its impact on the wage price index was in the September

and December quarters each year. This impact contributed to the level of seasonality for

those quarters. As a result of industrial relations changes associated with WorkChoices,

the AIRC ceased its annual SNR decisions and the setting of federal minimum wage rates

became the responsibility of the Australian Fair Pay Commission (AFPC). There was

therefore no SNR decision in 2006.

40 The AFPC's first decision was handed down on 26 October 2006 with a date of effect

of 1 December 2006. The impact on the wage price index of the first AFPC ruling was

mainly in the March quarter of 2007. This has resulted in changes in the size and timing

of wage increases reported. These changes have impacted on the seasonality of the wage

price index.

41 To account for this, the ABS has applied both a trend and a seasonal break in

compiling the seasonally adjusted estimates for the September quarter 2006.

42 It will take some time before the seasonality of the new wage setting mechanisms

can be determined. Seasonally adjusted estimates may be revised more than is usual as

additional observations become available.

SE A S O N A L L Y AD J U S T E D

IN D E X E S continued



52 As well as the statistics included in this and related publications, the ABS may have

other relevant data available on request. Inquiries should be made to Kathryn Parlor

on Perth (08) 9360 5151 or the National Information and Referral Service on

1300 135 070.

AB S DA T A AV A I L A B L E ON

RE Q U E S T

50 Users may also wish to refer to the following publications which are available free

on the ABS website <http://www.abs.gov.au>:

Labour Price Index: Concepts, Sources and Methods, (cat. no. 6351.0.55.001)

Information Paper: Update on ANZSIC 2006 Implementation for Labour Price

Index, Australia, 2009, (cat. no. 6345.0.55.001)

Consumer Price Index, Australia, (cat. no. 6401.0)

House Price Indexes, Eight Capital Cities, (cat. no. 6416.0)

International Trade Price Indexes, Australia, (cat. no. 6457.0)

Producer Price Indexes, Australia, (cat. no. 6427.0)

Australian Consumer Price Index: Concepts, Sources and Methods,

(cat. no. 6461.0)

Producer and International Trade Price Indexes: Concepts, Sources and Methods,

(cat no. 6429.0)

Australian Labour Market Statistics, (cat. no. 6105.0)

51 Current publications and other products released by the ABS are listed in the

Catalogue of Publications and Products (cat. no. 1101.0). The Catalogue is available

from any ABS office or the ABS web site. The ABS also publishes Future releases on the

web site which details products to be released in the week ahead.

RE L A T E D PU B L I C A T I O N S

49 Original index numbers will be released as final figures at the time they are first

published. Revisions will only occur in exceptional circumstances. Trend and seasonally

adjusted indexes for some quarters will be revised as extra quarters are included in the

series analysed for seasonal influences (see paragraphs 37 to 46).

RE V I S I O N S TO IN D E X E S

47 The reference base period of an index series is that period for which the value of

the index is set to 100.0. It is most commonly a year but can also be a different length of

time, ranging from two or three years down to a single quarter. It often coincides with

the weighting base for the series, but this is not essential. The September quarter 1997

was used as the original reference base for the wage price indexes as it was the first

quarter for which data was available.

48 With the introduction of the non-wage indexes, all indexes are presented on a

reference base of 2003–04.

RE F E R E N C E BA S E PE R I O D

of underlying behaviour than the seasonally adjusted estimates. Please refer to the ABS

Information Paper, A Guide to Interpreting Time Series - Monitoring Trends (cat. no.

1349.0).

46 The ABS has undertaken an assessment of the SNR contribution to the relative level

(or trend) of the wage price index. Over the life of the wage price index, the SNR has had

a cumulative contribution to the level of the index. This cumulative contribution

terminated after June 2006. As a result, there has been a break in the WPI trend series.

Updated trend estimates were not produced in the September quarter 2006 to March

quarter 2008 editions of the Labour Price Index, Australia due to insufficient data,

however the series has now been reinstated.

TR E N D ES T I M A T E S continued



. . not applicable(a) See paragraphs 29–30 of the Explanatory Notes.(b) Components may not sum to 100.0 due to rounding.(c) Classified according to the Australian and New Zealand Standard Industrial

Classification (ANZSIC), 1993 (cat. no. 1292.0).(d) For the public sector, these industries are combined and included in the 'All

Industries' total.

100.0100.0100.0All industries

3.36.82.1Personal and other services

2.02.32.0Cultural and recreational services

11.320.08.2Health and community services

9.226.03.7Education

6.827.2. .Government administration and defence

11.7(d)14.2Property and business services

6.0(d)7.4Finance and insurance

2.9(d)3.3Communication services

5.0(d)5.4Transport and storage

2.9(d)3.8Accommodation, cafes and restaurants

8.7(d)11.4Retail trade

5.9(d)7.8Wholesale trade

5.0(d)6.1Construction

1.5(d)1.0Electricity, gas and water supply

15.4(d)20.3Manufacturing

2.5(d)3.3Mining

Sector by broad industry group(c)

100.0100.0100.0Australia

2.66.61.3Australian Capital Territory

1.11.90.8Northern Territory

1.82.51.6Tasmania

9.88.910.1Western Australia

6.96.87.0South Australia

17.419.716.6Queensland

25.019.226.8Victoria

35.534.435.8New South Wales

Sector by State/Territory

100.024.575.5Australia

Australia by sector%%%

TotalPublicPrivate

DISTR IBUT ION OF EMPLOYERS ' TOTAL EXPENDITURE ON WAGESAND SALARIES (a) (b )A1

AS UP D A T E D DE C E M B E R

QU A R T E R 20 0 8


A P P E N D I X 1 D I S T R I B U T I O N O F E X P E N D I T U R E O N W A G E S

(a) Refer to paragraphs 3–6 of Explanatory Notes for a description of the indexes.(b) Reference base of each index: 2003–04 = 100.0.

4.13.84.0116.7112.1108.0103.8All sectors4.04.14.4118.0113.5109.0104.4Public4.13.64.0116.2111.6107.7103.6Private

LA B O U R PR I C E IN D E X EX C L U D I N G BO N U S E S

–4.7–4.81.392.897.4102.3101.0All sectors–4.9–2.32.598.6103.7106.1103.5Public–4.7–5.40.991.395.8101.3100.4Private

WO R K E R S ' CO M P E N S A T I O N


PA Y R O L L TA X


SU P E R A N N U A T I O N


AN N U A L AN D PU B L I C HO L I D A Y LE A V E

2007-082006-072005-062007–082006–072005–062004–05

CHANGE FROM PREVIOUSFINANCIAL YEAR(%)INDEX NUMBERS(b)

NON- WAGE AND LABOUR PRICE INDEXES (a) , Secto rA2NO N - W A G E AN D LA B O U R

PR I C E IN D E X E S


A P P E N D I X 2 S U M M A R Y O F NO N - W A G E A N D L A B O U R PR I C E I N D E X E S

The period to which the expenditure weights relate.Weighting base

Measures changes in the price of wages.Wage price index

A measure of the underlying direction of a series (see Explanatory Notes paragraphs45–46, 49).

Trend

Measures quarterly change in combined ordinary time and overtime hourly rates of pay(see Explanatory Notes paragraph 13).

Total hourly rates of pay index

Measures changes in the price of superannuation (see Explanatory Notes paragraph 17).Superannuation index

Process of removing systematic calendar related effects from the original series (seeExplanatory Notes paragraphs 37–44, 49).

Seasonal adjustment

Public sector comprises local government authorities and all government departmentsand agencies created by, or reporting to, the Commonwealth, or state/territoryparliaments. The private sector comprises all organisations not classified as public sector.

Sector

The reference date for this survey is the last pay period ending on or before the thirdFriday of the middle month of the quarter, except for bonuses which are collected inrespect to those paid during the three month period ending on the third Friday of themiddle month of the quarter.

Reference date

The period for which an index series is given the value of 100.0. The current referencebase for the LPI is the 2003–04 financial year.

Reference base period

Measures changes in the price of payroll tax (see Explanatory Notes paragraph 18).Payroll tax index

The number of hours paid for in excess of ordinary time hours.Overtime hours

Award, standard or agreed hours of work paid for at the ordinary rate.Ordinary time hours

Measures quarterly change in ordinary time hourly rates of pay (see Explanatory Notesparagraphs 10 and 11).

Ordinary time hourly rates ofpay index

Measures changes in the price of labour. Includes wages and salaries, overtime, bonuses(only in the labour price including bonuses index), annual and public holiday leave,superannuation, payroll tax and workers' compensation (see Explanatory Notesparagraph 20).

Labour price index

Classified according to the Australian and New Zealand Standard IndustrialClassification (ANZSIC), 1993 (cat. no. 1292.0).

Industry

Measures the ratio of the price of labour between the commencement of the index seriesand a later period.

Index number

A measure of the relative importance of each elementary aggregate, based on employers’total expenditure on the LPI component being considered (e.g. wages and salaries,superannuation, etc.). Expenditure weights are used to combine elementary aggregateindexes into broader level indexes.

Expenditure weights

Organisation with one or more employees.Employer

A job for which the occupant receives remuneration in wages, salary, payment in kind, orpiece rates.

Employee job

The finest aggregations of jobs, in terms of state/territory, sector and industry group, forwhich expenditure weights are available.

Elementary aggregates

Payments made to a job occupant that are in addition to regular wages and salaries andwhich generally relate to the job occupant’s, or the organisation’s, performance. In theLPI, the term 'bonuses' refers to bonuses and commissions.

Bonuses

Measures changes in the price of annual and public holiday leave (see Explanatory Notesparagraph 16).

Annual and public holidayleave index


G L O S S A R Y

Measures changes in the price of workers' compensation (see Explanatory Notesparagraphs 18 and 19).

Workers' compensation index


G L O S S A R Y continued

www.abs.gov.auWEB ADDRESS

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F O R M O R E I N F O R M A T I O N . . .

© Commonwealth of Australia 2009Produced by the Australian Bureau of Statistics

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labour price index australia

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