Wages growth is in decline with most workers in the private sector going backwards financially as their pay falls below inflation.
With an annual growth of 1.9 per cent, it is clear real wages are now falling. Public sector wages however are setting the pace and even they are rising relatively slowly rising by 0.6 per cent in the March quarter and by 2.4 per cent over the year. Private sector wages rose 0.5 per cent in the quarter and 1.8 per cent annually. The growth of public sector wages has outstripped the private sector since 2014.
The problem with stagnant wages growth is it places the federal government’s budget forecasts at risk.
George and Paul chat with Judith Sloan, who is the Contributing Economics Editor with ‘The Australian’ and she wrote about this topic recently.