A leading economist has warned Australia is in a "self-fulfilling cycle" of low productivity and wages growth after today's CPI figures showed year-on-year inflation almost flatlining at just 1%.
Productivity, hours worked and real unit labour costs increased markedly in the year to March, while the wages share of the economy increased to a 12-year high, according to ABS national accounts data released today.
Annual growth in rates of pay excluding bonuses in the private sector has dropped to a new record low of just 1.9% in trend terms, according to the ABS.
Hourly rates of pay excluding bonuses in the private sector are increasing at a record low of 2.2% a year in trend terms, according to the ABS Wage Price Index, released today.
Unions lost almost 93,000 members in the 12 months to August last year and density plunged to new lows of 17% overall and 12% in the private sector, according to the ABS.
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