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Fairfax’s survey of 22 well-known economists shows that most believe that real wages will fall over the coming two years, despite the economy’s recovery from the COVID-19 pandemic.
They forecast that wage growth will fall further to 1.2% this year before lifting to 1.6% in 2022.
However, this growth will be below inflation, with the Consumer Price Index (CPI) expected to come in around 1.7% over the next 12 months, thereby sending real wage growth backwards.
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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.
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