Australia’s real wage depression

Friday 7 November 2025

Australians have suffered the deepest decline in real wages in recorded history.

As of the June quarter of 2025, Australian real wages were tracking 6.0% below their June 2020 peak, at roughly the same level as December 2011.

The Reserve Bank of Australia (RBA) released its Statement of Monetary Policy (SoMP) this week, which contains the following economic forecasts:

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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.