The AFR’s Luke Kinsella is the latest commentator to warn about Australian real wages, which have collapsed back to 2011 levels and face a painfully slow recovery amid sluggish productivity growth.
Kinsella notes that ordinary Australians are struggling with higher costs for essentials like housing, food, and energy. As a result, rising living costs are eroding household purchasing power, leaving many Australians worse off even as headline wage growth appears positive.
Economists warn that unless productivity improves, wage growth will continue to lag behind inflation, undermining living standards and fueling political pressure for intervention.
