Amid record labour shortages, business lobby demands wage cuts

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Over the past year, Australia’s various business groups have whined incessantly about ‘labour shortages’ and demanded the federal government throw open the immigration floodgates so they can import hundreds of thousands of cheap migrant workers.

Yet when it comes to actually increasing wages to alleviate said labour shortages, the business lobby always refuses.

The latest example comes via debate over the minimum wage, with the various major business groups all demanding the Fair Work Commission (FWC) grant pay rises well below the rate of inflation, meaning Australian workers would once again go 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.