Labour costs and productivity [H4]

H4 LABOUR COSTS AND PRODUCTIVITY

The wage price index data are from the ABS Wage Price Index release. The ‘Wage price index’ measures the change in the hourly rate of pay for a fixed basket of ‘constant quality’ jobs. These series record the change in total pay exclusive of bonuses.

‘Non-farm nominal unit labour costs’ is calculated as non-farm labour costs per hour divided by non-farm productivity per hour, where non-farm labour costs per hour is non-farm average earnings per hour (as defined below) adjusted for payroll taxes, employment subsidies and the hourly labour costs of self-employed workers. The data are from the ABS Australian National Accounts: National Income, Expenditure and Product release.

’Non-farm average earnings per hour’ is calculated as non-farm compensation of employees divided by non-farm employee hours. The data are from the ABS Australian National Accounts: National Income, Expenditure and Product release.

‘Non-farm labour productivity’ is calculated as chain volume non-farm GDP divided by non-farm aggregate hours worked. The index is referenced to 100.0 for the financial year 2019/2020. The data are from the ABS Australian National Accounts: National Income, Expenditure and Product release.