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Wages and On-Costs in Australian Industries: 1968-69 to 1985-86

In the study summarized here, estimates were made of the costs of employing labour in Australian industries for the years 1968-69 to 1985-86. The estimates include wages and five types of on-costs. They imply that the on-cost share in labour costs increased sharply in each industry over the period 1968-69 to 1974-75. Since 1974-75, on-cost shares have continued to grow but at moderate rates. The estimates rely on a wide variety of data sources and involve numerous interpolations and extrapolations. They are suitable for the analysis of medium-term trends rather than annual movements. It is to be hoped that the ABS continues its surveys of labour costs started in 1987. These surveys would then provide satisfactory time-series data for investigating the relationship between labour costs and other variables such as employment and inflation. They would also obviate the need for further studies of the type reported in this paper.