Enterprise agreements dampen wage-inflation fears

The Australian Institute’s Greg Jericho has released analysis of the latest enterprise agreement (EA) data, which shows that wage growth remains within the RBA’s inflation target:

According to Jericho, the Fair Work Commission’s most current weekly data on wage increases in EAs showed that wage growth continues well below inflation, with no signs of wages expanding at a rate that would accelerate inflation.

The most recent quarterly numbers for EA salary increases shows that enterprise agreements delivered on average a 3.5% annual wage increase in the private sector in the final three months of 2022.

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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.