Advertisement
Recall that the March quarter wage price index showed that Australian real wages had fallen by 7.1% from their June 2020 peak to be tracking at their lowest level since June 2010:
The forecasts contained in the latest federal budget also projected that real wages would only recover to December 2014 levels by 2028:
Advertisement
On Monday, Westpac lowered its wage growth forecast to only 3.0% by the end of 2024, following the Fair Work Commission’s decision to raise minimum and award wages by 3.75%.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
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.