Remuneration Trends and Insights

Key Economic Indicators

Mercer's Key Economic Indicators reviews key statistical indicators of the Australian economy.

 

 

August 2021

 

Economy snapshot

 

This section reviews key statistical indicators of the Australian economy, including:

  • Gross Domestic Product (GDP)
  • Inflation – Consumer Price Index (CPI)
  • Employment and unemployment
  • Wage Price Index (WPI)

Key economic indicators showed:

  • Positive GDP growth
  • Moderate inflation
  • Low unemployment rate
  • Low wage price growth



GDP growth


GDP increased by 1.8% (seasonally adjusted) in the March quarter, bringing the annual GDP growth to March 2021 to 1.1%.

The March 2021 quarter results showed positive growth in 16 of the 20 industry divisions (seasonally adjusted). 


The top three positive movers were:

  • Other services (up 5.8%)
  • Arts and recreation services (up 5.7%)
  • Rental, hiring and real estate services (up 5.3%)

The lowest three movers were:

  • Information media and telecommunications (down 1.9%)
  • Retail trade (down 1.0%)
  • Electricity, gas, water and waste services (down 0.9%)


Consumer Price Index


The all-groups CPI reported an increase of 0.8% in the June 2021 quarter, following a change of 0.6% in the March 2021 quarter [ABS catalogue 6401.0]. The annual change from June 2020 to June 2021 was 3.8%. 

 

The most significant price rises in the quarter were:

  • Automotive fuel (up 6.5%)
  • Vegetables (up 5.5%)
  • Fruit (up 4.7%)

The most significant offsetting price falls in the quarter were:

  • Accessories (down 2.6%)
  • Domestic holiday travel and accommodation (down 1.3%)
  • Pork (down 1.1%)
  • Food additives and condiments (down 1.1%)
  • Pharmaceutical products (down 1.1%)

 

CPI - % change by location

 
  June quarter 2021 (%) Year to June 2021 (%)
Sydney 0.8 4.1
Melbourne 0.3 2.9
Brisbane 0.8 4.9
Adelaide 0.5 2.8
Perth 1.9 4.2
Hobart 1.1 3.6
Darwin 1.0 6.1
Canberra 0.8 4.8
Weighted average of eight capital cities 0.8 3.8
 

Source: Australian Bureau of Statistics



Employment


In July 2021, the seasonally adjusted national unemployment figure decreased to 4.6% (ABS catalogue 6202.0). The unemployment rate for males and females is 4.6% and 4.7% (seasonally adjusted) respectively.

 

The seasonally adjusted labour force participation rate for July 2021 decreased by comparison to last month to 66%, with male and female participation rates recorded at 70.7% and 61.4% respectively.

 

There were 13,156,400 people employed nationally in July 2021, with full-time employment decreasing to 9,012,600 and part-time employment increasing to 4,143,800 according to seasonally adjusted figures.


On a seasonally adjusted basis, the unemployment rates for each state in July 2021 were:

  • New South Wales – 4.5%
  • Victoria – 4.5%
  • Queensland – 5.2%
  • South Australia – 4.7%
  • Western Australia – 4.6%
  • Tasmania – 4.5%

 

Australian labour force data  2020-2021

 
  Unemployment rate (%) Participant rate (%)
July 2020 7.4 64.7
August 2020 6.8 65.0
September 2020 6.9 64.8
October 2020 6.9 65.7
November 2020 6.8 66.0
December 2020 6.6 66.0
January 2021 6.4 66.0
February 2021 5.9 66.0
March 2021 5.7 66.3
April 2021 5.5 65.9
May 2021 5.1 66.2
June 2021 4.9 66.2
July 2021 4.6 66.0
 

Source: Australian Bureau of Statistics



Wage Price Index

 

The Wage Price Index [ABS catalogue 6345.0] measures changes in wage and salary costs for a selection of jobs, unaffected by changes in the quality and quantity of work performed.

 

Movements in total hourly rates of pay (excluding bonuses) - original figures

 
  June 2021 quarter  (%) change June 2021 year (%) change
All employees in Australia 0.3 1.8
Private sector 0.3 1.9
Public sector 0.2 1.3
New South Wales 0.3 1.8
Victoria 0.3 1.8
Queensland 0.3 1.7
South Australia 0.4 1.6
Western Australia 0.3 1.6
Tasmania 0.5 2.2
Northern Territory 0.1 1.9
Australian Capital Territory 0.6 1.7
Mining 0.4 1.4
Manufacturing 0.4 1.7
Electricity, gas and water and waste services 0.1 1.3
Construction 0.4 2.2
Wholesale trade 0.4 1.6
Retail trade 0.2 1.6
Accommodation and food services 0.2 1.7
Transport, postal and warehousing 0.1 1.4
Information media and telecommunications 0.2 1.2
Financial and insurance services 0.4 1.7
Rental, hiring and real estate services 0.6 1.1
Professional, scientific and technical services 0.4 2.5
Administrative and support service 0.3 1.0
Public administration and safety 0.2 1.4
Education and training 0.3 1.9
Health care and social assistance 0.1 1.8
Arts and recreation services 0.1 0.9
Other services 0.2 2.6
 

Source: Australian Bureau of Statistics

Disclaimer: While every care has been taken to ensure the accuracy of the information, no warranty is given in respect thereof.


 

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