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Skip Navigation LinksLabour Market Statistics and Publications > Concepts > Annualised Percentage Growth Uses
Annualised Percentage Growth Uses
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Using Mean, Median or Mode Mean Median ModeA Measure Enabling Comparison Absolute vs Relative Change Annualized Percentage Growth Distribution Incidence From Sample to PopulationSample Reliability Seasonal Adjustment Percentiles Quantitative vs Qualitative Range Ratios Stock and Flow

Uses

The concept of annualised growth rate is especially useful if we need to compare the performance of an indicator over two unequal periods of time.

Suppose Adam’s wages grew by 10% over the 5 years from 2000 to 2005, and by 6% over the 2 years from 2005 to 2007. Can you conclude that the wage growth is stronger from 2000 to 2005?

 

Adam’s Wage Growth.


As the time periods are unequal, the figures above do not give a clear basis for comparison.
 
After computing the annualised wage growth for the two periods, we find that Adam’s wage grew by an average of 1.9% per year from 2000 to 2005, and 3.0% per year from 2005 to 2007. It turns out that the growth in Adam’s wages was actually faster in the later period from 2005 to 2007.
 
Adam’s Annualised Wage Growth