Aussie wage growth universally weak

The RBA has released a new Bulletin article, entitled Wages Growth by Pay-setting Method, which highlights how wage growth in Australia is universally weak, regardless of the type of agreement:

Regardless of skill level:

Regardless of sector:

And irrespective of whether they are mining exposed:

Looking ahead, the RBA predicts a gradual pick-up in wage growth:

Overall, these outlooks for the various pay-setting methods support the forecast for wages growth as published in the Bank’s recent Statement on Monetary Policy, which suggests a gradual pick-up in wages growth over the next couple of years.

Of course, this forecast should be considered very low reliability, given the RBA’s atrocious record:

The truth is, as long as the cheap labour supply shock embedded in the mass immigration economic model persists, Aussie wages growth will remain stillborn.

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Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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