Wages fell by 0.7% in the year to June, according to the Melbourne Institute’s latest monthly survey of workers. It is the first time there has been negative growth in pay since the early 2000s, with the series also hitting a record low.
Sam Tsiaplias of the Melbourne Institute notes that wages growth has been subdued for some years, and the economic impact of the pandemic is likely to put more downward pressure on wages:
“A negative (pay growth) number on its own is very unusual, and a large negative number is unique,” MI senior research fellow Sam Tsiaplias told The Australian.
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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.
