Speech: Real Wages Growth

Speech: Real Wages Growth Main Image

Mrs PHILLIPS (Gilmore) (12:25): I have been pleasantly surprised to see the growing confidence in both the aged-care and childcare industries in my electorate of Gilmore following wage increases in both sectors. Whether it's caring for our youngest citizens or our oldest, the Albanese government is supporting those who play a vital role in our community with a much-deserved pay increase. I have visited many childcare centres in my electorate over the past few months, and the management, staff and families were thrilled about this government's decision to fund a 15 per cent increase for early childhood educators. Not only has it provided a boost for existing employees; this pay rise has made the childcare sector more attractive for school leavers and those seeking work in an industry that is shaping the next generation of Australians. Since the announcements, I've started seeing new childcare centres popping up in my electorate, which is fabulous because many families struggle to secure a place for their children. In Gilmore, we need more childcare providers, and this pay rise means more staff, more job security, more centres and ultimately more places for our little people.

The ECTARC Clipper Road Early Education and Care Service in East Nowra welcomed the pay rise, with the CEO Anita Kumar explaining how difficult it had been to attract and retain staff in an often challenging environment. The majority of the young children in care at Clipper Road are from disadvantaged backgrounds, and the wonderful staff are exhausted by the end of the day. Anita said the pay increase was well deserved by her passionate team and she is confident it will help attract additional staff, which means the centre can stay open longer, therefore helping local families in need. It was also great to see Little Zak's Academy recently open its doors in Bomaderry, with a second centre soon to open in Kiama. New childcare centres are also on the drawing board for Ulladulla, Sussex Inlet, North Nowra and central Nowra, which is just fantastic.

I'm seeing a similar scenario playing out in aged care. In the electorate with the second-highest number of aged-care pensioners in the country, aged-care workers are in demand. The Albanese government's investment of $3.8 billion over four years to support the aged-care sector has given providers more confidence. The 15 per cent wage increase for aged-care workers makes this important industry more attractive for workers needing the financial security to buy their own homes. Funding pay rises for aged-care workers of up to 28 per cent for workers from 1 January 2025 will facilitate the delivery of a higher standard of care for older Australians.

Labor's workplace reforms are delivering secure jobs and better pay, which is providing cost-of-living relief. In the two years until May 2024, average weekly earnings have increased by $153.60 per week, compared to only $55.90 per week over the two years prior to May 2022, when the coalition was in office. In the June 2024 quarter, I'm pleased to say we've seen a wage price index growth of 4.1 per cent, the second-largest annual growth rate since December 2009. The WPI has been equal to or above four per cent for the last four quarters, which has not occurred since Labor was last in government. Under the Albanese government in the year to June 2024, we've seen the highest wage increases in the healthcare and social assistance sectors, education and training industry, and electricity gas, water and waste services.

Since coming to government, we have seen strong nominal wage growth and weakening inflation, which has resulted in real wage growth returning, thanks to our workplace relations reforms and responsible economic management. We have gone in to bat for low-paid workers with a national minimum wage increase three times in three years. That's an extra $103.30 per week in the pockets of full-time employees. We have advocated for wage increases and have taken steps to reinvigorate bargaining with our significant reforms under the secure jobs, better pay act. These changes mean that almost half a million more workers are now covered by current enterprise agreements, improving conditions and delivering real wage rises. The Albanese government is also supporting women to earn more, and I'm thrilled that in September the female participation rate was at a record high of 63.2 per cent. It's also great news that the gender pay gap is now the lowest on record.

The numbers are clear. People are working and earning more, and real wages keep growing under Labor.