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Australia’s wage price index (WPI), which measures changes in like-for-like wages across the economy – grew by only 2.6% in the year to June, suggesting wage growth has failed to launch in the face of 48-year low unemployment.
However, ANZ Bank contends that the WPI is being skewed by an increase in people either getting promoted to a higher-paid position or moving to another job with better pay, as such movements are not recorded in the WPI.
This claim undermines union claims that Australians are not being adequately compensated for their productivity.
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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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