This week, the Australian Bureau of Statistics (ABS) reported that Australian wage growth was negative for the second consecutive quarter.
This means that real wages have fallen by 7.2% from their mid-2020 peak to be tracking at 2010 levels:
It also means that Australians have given up around 14 years of gains in their real wages.
The May federal projection was that real wages would only recover to December 2014 levels by mid-2028:
Therefore, by mid-2008, Australians will still have given up 14 years of real wage gains, according to the federal budget.
Additionally, the Treasury projects that real wages will still be 4.3% below their June 2020 peak in mid-2028.
The latest Statement of Monetary Policy (SoMP) from the Reserve Bank of Australia (RBA) is equally bleak with respect to real wage growth.
The SoMP projects that by the end of 2026, Australian real wages will only have recovered to December 2011 levels:
Therefore, by the end of 2026, Australians will have given up around 15 years of wage gains, according to RBA projections.
Additionally, the RBA projects that real wages will still be 6.4% below their June 2020 peak at the end of 2026.
The above data shows why this will be a lost decade for Australians.
It could take more than a decade for Australian real wages to recover back to their peak.
