Australia: WCI turns the corner, but nothing alarming - TDS

Australia’s Q3 Wage Cost Index rose +0.5%/qtr and +2.0%/yr, less than mkt and TD expectations, so AUD slipped 50pips to $US0.758, explains the research team at TDS.

Key Quotes

“Private wage growth picked up from 1.8% to 1.9%/yr, while the public sector remained at 2.4%/yr. Cyclical wages (Manufacturing, Construction and Professionals) rose to 1.82%/yr, the highest in nearly two years.”

“Large increases in minimum wages tends to exacerbate youth un(der)employment, where the underemployment ratio for the 15-24 age bracket is multiples of the prime working age (25-54) bracket.”