A reduction in size and frequency of pay rises explains the recent historically-low growth in wage rates, according to new RBA research conducted in collaboration with the ABS.
Government queries basis for multi-year minimum wage target; Industrial dispute data among potential casualties of ABS cuts; Ex union official named in Royal Commission wins Labor Senate seat; Respected NZ trade union leader dies at 52.
Growth in rates of pay excluding bonuses are now firmly below 2% for the first time since the ABS began compiling the Wage Price Index nearly 20 years ago.
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.
