After more than a decade of sub-4% growth in pay, Treasury has projected in its Intergenerational Report, released today, that it will return to that level in 2028 as productivity resumes its long-term growth path of 1.5%.
Bargained wage rises in the private sector show little sign of pushing towards the "materially higher" benchmark set by the RBA, growing at 2.6% for the second quarter in a row, while public sector bargaining collapsed.
The ABS has delivered a small boost to hopes that wages growth might exceed restrained government projections after today's quarterly figures showed an annual lift of 1.5% across the economy.
The number of Australians working from home remains almost double the pre-COVID 19 figure and women are more likely want to expand the arrangement, according to the latest ABS data on how households are faring during the pandemic.
Real unit labour costs surged in the December quarter as the economic recovery gathered pace, while profit and wages shares retreated from the record levels recorded in the September quarter, according to ABS national accounts data released today.
Further evidence of the green shoots of a recovery has been provided with today's release of ABS data showing that private sector pay rates excluding bonuses increased by 0.7% seasonally adjusted and 0.5% in original terms in the December quarter.
Griffith University's Professor David Peetz has warned employers to consult their workers before implementing post-COVID-19 workplace changes or risk turning "disorder into chaos", ahead of today's repeal of NSW public health orders requiring organisations to allow employees to perform their duties from home.
