MYEFO still too optimistic on wage growth

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After years of overly optimistic wage growth forecasts:

Today’s Mid-Year Economic and Fiscal Outlook (MYEFO) has significantly downgraded wage growth from the 2019 Federal Budget:

The four year forecasts are shown below, which projects that wage growth will rebound to 3% by 2022-23:

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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.