Real wages continue to sink

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By Leith van Onselen

As noted earlier, figures released today by the ABS revealed that Australian wages growth fell to the slowest pace on record (1997) in the September quarter, clocking it at only 2.6% seasonally-adjusted and 2.5% trend over the year:

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When adjusted for underlying inflation, annual wages were dead flat in the September quarter in seasonally-adjusted terms and fell for the third consecutive quarter in trend terms, down 0.1% in the year to September 2014 (see below charts).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.