Business lobby logic back-to-front on minimum wage increase

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You know the business lobby has completely lost the plot when it tries to argue that Australia’s tight labour market and staff shortages are a reason not to lift the minimum wage in line with inflation:

Australian Chamber of Commerce and Industry cautioned that workers were taking advantage of the tight labour market to move away from those sectors most vulnerable to COVID-19 restrictions and “it is not likely that workers will quickly return”.

“High job vacancies are a constraint on businesses’ ability to operate at full capacity and should be viewed as a factor likely to slow the recovery of an industry sector”…

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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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