The yawning gulf between wages and profits narrows

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By Leith van Onselen

Monday’s September quarter Business Indicators release from the ABS, which feeds into the national accounts, showed that wages & salaries remain wildly divergent from business profits; albeit the gap has narrowed.

As shown in the next chart, real business gross operating profits had boomed in the year to June, but retraced over the September quarter:

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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.