07 May 2021
Average salary deposits rose in April after a weak March, signalling some strength in the labour market despite the end of the government’s JobKeeper wage subsidy.
Monthly growth of average salary deposits in April was the strongest monthly result in the ANZ deposits data so far.
"The fall in government deposits may also reflect a move away from JobSeeker entitlements for those who found work.”
Average government deposits fell in the latest data, reflecting lowering levels of fiscal support including the end of the JobSeeker supplement.
The fall in government deposits may also reflect a move away from JobSeeker entitlements for those who found work.
Investment incomes are recovering after a dip in October 2020 when the impacts of 2020 business conditions on dividends were felt the most.
Average salary deposit growth in April was highest in New South Wales, Victoria and Queensland while smaller state growth was more modest.
Taking a broader view, Western Australia, the Northern Territory and the Australian Capital Territory all saw larger salary deposit increases for the three months to April compared with Q1 2020. Salary deposits for Queenslanders are still below pre-pandemic levels.
Average salary deposits for 15–29-year-olds grew faster in April than other age brackets but annual growth was still strongest in the 60–74 age cohort. Compared with Q1 2020, average salary deposits for 30–44 year olds grew the least.
Adelaide Timbrell and Charlotte Heck-Parsch are Economists and David Plank is Head of Australian Economics at ANZ
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
07 May 2021
25 May 2021