6261.0.55.001 - Characteristics of Wage and Salary Earners in Regions of Australia, 2002-03
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 22/02/2006
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INTRODUCTION
Between 2001-02 and 2002-03:
DISTRIBUTION OF WAGE AND SALARY EARNERS In 2002-03, approximately 90% of Australia's wage and salary earners resided in Major Cities and Inner Regional areas, with 69.7% and 18.9% in these areas respectively. Outer Regional areas accounted for 9.3% of Australia's wage and salary earner population, while Remote and Very Remote areas comprised a combined 2.1% of total wage and salary earners resident in Australia. In comparison, at 30 June 2003, it was estimated that 66.3% of Australia's total population were located in Major Cities, while Inner Regional areas accounted for 20.9%. Outer Regional areas comprised 10.3% of the total population, with Remote and Very Remote areas combined estimated to account for 2.5%. These proportions show that the distribution of wage and salary earners is similar to the distribution of the total population. They also broadly reflect the concentration of wage and salary earners within Major Cities areas, with the greater availability and versatility of employment opportunities within these regions. In New South Wales, Victoria, South Australia and Western Australia, approximately 75% of wage and salary earners resided in Major Cities, corresponding to total population estimates in these same areas of just over 70%. Queensland recorded the lowest proportion of wage and salary earners residing within Major Cities at 55.9%, corresponding to a lower total population estimate of 52.7%. The proportion of wage and salary earners residing in Queensland's Inner Regional areas (including Gladstone and Hervey Bay) and Outer Regional areas (including Cairns and Port Douglas) were 23.1% and 17.6% respectively, higher than the national proportions of 18.9% and 9.3%. These figures are consistent with the greater distribution of Queensland's population along the coastal seaboard. It was estimated that 45.6% of the Northern Territory's total population were located in Remote (including Alice Springs and Katherine) and Very Remote areas (including Tennant Creek and Nhulunbuy) as at 30 June 2003. With 33.7% of its wage and salary earner population residing in these areas (19.9% and 13.7% respectively), the Northern Territory displays the largest differential between wage and salary earners and total population within these remoteness areas. In Tasmania, 65.9% of the wage and salary population were resident in Inner Regional areas (including Hobart and Launceston) and 31.8% in Outer Regional areas (including Georgetown and Latrobe), while 63.8% and 33.9% of the total population were residents in Inner Regional and Outer Regional areas respectively. DISTRIBUTION OF WAGE AND SALARY EARNERS BY REMOTENESS AREA,
States and Territories, 2002-03
(a) Excludes data that could not be allocated to a remoteness area. Source: ATO Income Tax Data. DISTRIBUTION OF ESTIMATED RESIDENT POPULATION BY REMOTENESS AREA
States and Territories, 30 June 2003
Source: ABS, Regional Population Growth, Australia and New Zealand 2003-04 (cat. no. 3218.0) All of Australia's remoteness areas recorded positive growth in the number of wage and salary earners between 2001-02 and 2002-03, except for Very Remote areas (-0.2%) which continues to reflect a downward trend since 1996-97 (Note: The exclusion of Community Development Employment Project (CDEP) income from 1998-99 onwards could also be responsible for the observable decrease in the number of wage and salary earners and conversely the upward movement in the median annual wage and salary income for Remote and Very Remote areas. For further details please refer to the Explanatory Notes). Inner Regional areas recorded the highest increase of wage and salary earners at 3.6%, followed by Major Cities and Outer Regional areas, both with increases of 2.0%. The growth in Inner Regional areas of wage and salary earners may be influenced by lifestyle choices and the relative affordability of these regions, whilst still offering high levels of accessibility to services and Major Cities areas (Australian Social Trends, 2003 (cat. no. 4102.0)). Total wage and salary income received by Australia's wage and salary earners was $283.8 billion in 2002-03, increasing from $267.4 billion in 2001-02 and $259.6 billion in 2000-01. In 2002-03, all remoteness areas recorded positive growth in the level of total wage and salary income. The growth in Inner Regional areas was greatest in percentage terms, recording an increase of 7.4% from 2001-02 and an average annual rate of increase of 5.4% over the 6 year period from 1996-97 to 2002-03. Remote areas recorded an increase in 2002-03 over the previous year of 4.8% and an average annual rate of increase of 2.1% between 1996-97 and 2002-03. Major Cities contributed $206.3 billion, or 72.7% of total wages and salaries paid in 2002-03, decreasing from 72.9% in 2001-02. Inner Regional areas have consistently increased its contribution to total wages and salaries paid, at 16.8% in 2002-03, 16.5% in 2001-02 and 16.2% in 2000-01. Very Remote areas contributed $1.7 billion or 0.6% of Australia's total wages and salaries paid in 2002-03. The wages and salaries paid to employees in Major Cities and Inner Regional areas continue to increase at a higher rate than for employees in other regions, increasing the income disparity between these and other remoteness areas. WAGE AND SALARY EARNERS, by Remoteness Area, 1996-97 to 2002-03
(b) Total includes data that could not be allocated to remoteness area. Note: Indigenous persons engaged in Community Development Employment Projects (CDEP) may be included in the above data for the years 1996-97 to 1997-98 and excluded for 1998-99 onwards. Consequently, changes between 1997-98 and 1998-99 and 1996-97 and 2002-03 in particular need to be treated with caution. For further details please refer to the Explanatory Notes. Source: ATO Income Tax Data. TOTAL WAGE AND SALARY INCOME, by Remoteness Area, 1996-97 to 2002-03 Source: ATO Income Tax Data. The median annual wage and salary income for wage and salary earners in Australia, for the financial year 2002-03, was estimated at $32,698, an increase of 3.9% over the previous year ($31,483) and an average annual rate of increase for the period 1996-97 to 2002-03 of 3.3%. Very Remote areas had the highest average annual rate of increase of median annual wage and salary income over the period 1996-97 to 2002-03 at 5.3%, followed by Remote areas at 3.5%. In 2002-03, employees in Remote and Very Remote areas recorded higher medians than employees in Inner Regional and Outer Regional Australia, moreover, Remote areas had the greatest percentage increase in median wage and salary income between 2001-02 and 2002-03 at 4.5%. Outer Regional and Very Remote areas followed at 4.2% and 4.0 respectively. The higher medians in these areas are likely to be influenced by the concentration of mining within these sectors, and the higher wage and salary packages offered to attract and retain skilled and semi-skilled employees within these regions (AMP-NATSEM Income and Wealth Report, Issue 1, February 2002). Inner Regional areas recorded the smallest percentage increase between 2001-02 and 2002-03 at 3.5%. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Remoteness Area, 1996-97 to 2002-03
(a) Average annual rate of increase. (b) Total includes data that could not be allocated to a remoteness area. Note: The median is the mid value which divides a population distribution into two, with half of the observations falling below it and half above it. Median wage and salary income has been calculated from data provided in ranges and therefore distribution within a range has been assumed to be even. Care should be taken when using the data and the median treated as an estimate only). Source: ATO Income Tax Data. MEDIAN ANNUAL WAGE AND SALARY INCOME(a), by Remoteness Area, 1996-97 to 2002-03 Source: ATO Income Tax Data (a) Indigenous persons engaged in Community Development Employment Projects (CDEP) may be included in the data for the years 1996-97 to 1997-98 and excluded for 1998-99 onwards. Consequently, changes between 1997-98 and 1998-99 and 1996-97 and 2002-03 in particular need to be treated with caution. For further details please refer to the Explanatory Notes. DISTRIBUTION BY SEX In 2002-03 there were 4.1 million male (53.0%) and 3.6 million female (47.0%) wage and salary earners in Australia. As the degree of remoteness increased, the proportion of male wage and salary earners generally increased in each remoteness area. The proportion of male wage and salary earners in Major Cities was 52.6% compared with 56.0% in Remote areas. Conversely, the proportion of female wage and salary earners in Major Cities was 47.4% compared with 44.0% and 45.5% in Remote and Very Remote areas respectively. WAGE AND SALARY EARNERS, by Sex and Remoteness Area, 2002-03
(a) Total includes data that could not be allocated to a remoteness area. Note: Due to the randomisation process applied to small cells for confidentiality purposes, totals for each characteristic and geographic area may differ from table to table. For further information please refer to the Explanatory Notes. Source: ATO Income Tax Data. PERCENTAGE DISTRIBUTION OF WAGE AND SALARY EARNERS, by Sex and Remoteness Area, 2002-03 Source: ATO Income Tax Data In 2002-03 median wage and salary income for both males and females was highest in Major Cities at $40,213 and $27,945 respectively. The second highest median for males was in Remote areas at $39,866, higher than the Australia wide median figure for males of $38,909. Very Remote areas recorded the second highest median annual wage and salary income for females at $25,164. In 2002-03 the median wage and salary incomes for males were consistently higher than those for females in all remoteness areas. The difference between male and female median incomes was over $10,000 in each region, with the highest difference in Remote and Very Remote areas ($15,833 and $13,035 respectively). The smallest difference between male and female median wage and salary income was in Outer Regional areas at $11,888. These differences may be attributable to females being more likely to occupy lower paid positions and to be working on a part-time basis. In 2003 approximately 46% of employed women worked part-time, compared to around 15% of males (Australian Social Trends, 2003 and 2004, (cat. no. 4102.0)). MEDIAN ANNUAL WAGE AND SALARY INCOME, by Sex and Remoteness Area, 2002-03
Source: ATO Income Tax Data MEDIAN ANNUAL WAGE AND SALARY INCOME, by Sex and Remoteness Area, 2002-03 Source: ATO Income Tax Data Between 2001-02 and 2002-03 median wage and salary incomes for males increased at the highest rate in Outer Regional areas at 4.5%, while for females the highest increase was in Remote areas at 4.4%. The median wage and salary incomes for both male and female wage and salary earners increased between the years 1996-97 to 2002-03 at an average annual rate of growth of 3.3%. The highest male wage and salary income increase in this period was in Very Remote areas, which saw an average annual increase of 4.9%. The highest increase of female wage and salary income over this time period was in Very Remote areas at 6.2%, followed by Remote areas at 4.2%. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Sex and Remoteness Area, 1996-97 to 2002-03
(b) Total includes data that could not be allocated to a remoteness area. Source: ATO Income Tax Data DISTRIBUTION BY AGE The proportion of wage and salary earners in each age group varies within each of the remoteness areas. The 25-34 year age group accounted for the largest proportion of wage and salary earners in Major cities and Very Remote areas (26.4% and 26.2% respectively), while in Inner Regional and Outer Regional areas the 35-44 year age group accounted for the largest proportion, both at 24.8%. In Remote Areas the 25-34 and 35-44 year age groups accounted for an equally high proportion of wage and salary earners at just over 25%. In the 25-34 and 35-44 year age groups the proportion of wage and salary earners outside of Major Cities increased as the degree of remoteness increased. For example, in Inner Regional areas, 21.5% of wage and salary earners were aged 25-34 rising to 26.2% in Very Remote areas. In contrast, outside of Major Cities, the proportion of wage and salary earners in the 15-24, 45-54 and 55 and over age groups generally decreased in proportion as the degree of remoteness increased. WAGE AND SALARY EARNERS, by Age Group and Remoteness Area, 2002-03
Source: ATO Income Tax Data PERCENTAGE DISTRIBUTION OF WAGE AND SALARY EARNERS, by Age Group and Remoteness Area, 2002-03 Age group (years) Source: ATO Income Tax Data Australia wide, median annual wage and salary increased with age, peaking in the 45-54 year age group at $38,616. This figure is likely to be influenced by the propensity of wage and salaries earners within this age bracket benefiting financially from promotions, increased qualifications and employment tenure. Median annual wage and salary income was lowest in the 15-24 year age group at $16,501, influenced by people in this age group beginning their careers, being in less skilled occupations and having lower levels of work experience and educational attainment. The past decade has also seen a rise in part-time employment among this age group, consistent with higher rates of participation in non-compulsory education (Australian Social Trends, 2004, (cat. no. 4102.0)). Median annual wage and salary income was highest in Major Cities for all age groups except for those aged 15-24 years, where Very Remote areas recorded the highest median wage and salary for this age group at $18,586. In general, as the degree of remoteness increased, median wage and salary incomes for those aged 15-24 years increased, from $16,577 in Major Cities to $18,586 in Very Remote areas. Due to the lower availability of educational facilities and accessibility to these services in Remote and Very Remote areas, wage and salary earners in the age group 15-24 are more likely to be working full time than combining part-time employment with non-compulsory schooling. In 2002-03, Outer Regional areas had the lowest median annual wage and salary income for all age groups except the 15-24 year age group. Across all age groups the medians were greater in Remote and Very Remote areas than in the Inner Regional and Outer Regional areas. This is likely to reflect the industry mix in each of these broad regions. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Age Group and Remoteness Area, 2002-03
Source: ATO Income Tax Data. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Age Group and Remoteness Area, 2002-03 Age group (years) Source: ATO Income Tax Data DISTRIBUTION BY AGE BY SEX In 2002-03, the proportion of male wage and salary earner populations in the age group 55 years and over were consistently higher in all remoteness area than the female populations within the same age group. The highest proportion of both male and female wage and salary earners in this age group were residing in Inner Regional areas at 12.5% and 9.7% respectively. The lowest proportion of males within this age group was in Remote areas at 10.9% and for females Very Remote areas at 8.3%. Males aged 55 years and over continue to have a higher participation rate in the labour force than females 55 years and over, consistent with the eligibility of females to receive the age pension before the age of 65 years. The proportion of people in the labour force aged 45-64 years continues to grow, reflecting a range of legislative and policy initiatives designed to decrease incentives for early retirement (Australian Social Trends, 2004 (cat. no. 4102.0)). Both males and females in the age category 15-24 had the lowest proportion of wage and salary earners located in Very Remote areas, while in the 35-44 year age category, the lowest proportion of wage and salary earners for both males and females was in Major Cities (24.1% and 23.2% respectively). Overall, outside of Major Cities areas, as the degree of remoteness increased the proportion of male and female wage and salary earners aged 25-34 and 35-44 years of age increased. WAGE AND SALARY EARNERS, by Age Group, Sex and Remoteness Area, 2002-03
(a) Total includes data that could not be allocated to a remoteness area. Source: ATO Income Tax Data. DISTRIBUTION BY OCCUPATION The proportion of wage and salary earners in each occupation group varies within each of the remoteness areas. Occupation groups such as Managers and administrators; Professionals; and Advanced clerical and service workers tended to decrease in proportion as remoteness increased whereas occupation groups such as Tradespersons and related workers; Intermediate clerical, sales and service workers; and Elementary clerical, sales and service workers generally increased in proportion as remoteness increased. Occupation data compiled from the ATO database includes a high proportion of wage and salary earners for whom the occupation was not stated or not coded. Care should therefore be taken when analysing the occupation distribution. Over the period for which this series has been compiled, the proportion of persons in the "not stated" category has decreased each year from around 27% in 1995-96 to 10.7% in 2002-03. It should also be noted that the proportion in the "not stated" category decreases with remoteness and may account for some of the apparent differences in occupations in the different remoteness areas. In Major Cities 11.2% of wage and salary earners did not state their occupation in 2002-03, decreasing to 6.9% in Very Remote areas. Further information is contained in the Glossary under Occupation. WAGE AND SALARY EARNERS, by Occupation(a) and Remoteness Area, 2002-03
(b) Occupation based data was extracted from ATO datasets after the extraction of the data on other characteristics of wage and salary earners had occurred. This has resulted in more records been processed at the time of the second extract as can be seen in the higher totals in the occupation data. (c) Australia total includes data that could not be allocated to a remoteness area. Note: Due to the randomisation process applied to small cells for confidentiality purposes, totals for each characteristic and geographic area may differ from table to table. For further information please refer to the Explanatory Notes. Source: ATO Income Tax Data. PERCENTAGE DISTRIBUTION OF WAGE AND SALARY EARNERS, by Occupation(a) and Remoteness Area, 2002-03 (a) Australian Standard Classification of Occupations, 2nd Edition. Source: ATO Income Tax Data. In 2002-03, Managers and administrators had the highest median annual wage and salary income ($47,611), followed by Professionals ($45,640) and Associate professionals ($39,594). The median annual wage and salary income for Managers and administrators substantially decreased outside of Major Cities. Reflecting the skills required in the major industry sectors of primary production and mining, Intermediate production and transport workers had the highest median income from wages and salaries in Remote and Very Remote areas at $49,983 and $50,117 respectively. Elementary clerical, sales and service workers had the lowest median annual wage and salary income in every remoteness area. In Major Cities, Elementary clerical, sales and service workers had a median annual wage and salary income of $17,215 while in Very Remote areas it was $19,795. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Occupation(a) and Remoteness Area, 2002-03
(b) Total includes data that could not be allocated to a remoteness area. Source: ATO Income Tax Data. MEDIAN ANNUAL WAGE AND SALARY INCOME, by Occupation(a) and Remoteness Area, 2002-03 (a) Australian Standard Classification of Occupations, 2nd Edition. Source: ATO Income Tax Data. Document Selection These documents will be presented in a new window.
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