Australia’s public sector boom is hiding living standards collapse

With the release of the latest ABS Wage Price Index data came news that real wages were once again contracting on an annual basis, despite headline inflation remaining suppressed by the Albanese government’s cut to the fuel excise tax.

As one might imagine, wage growth varied widely by industry, with the healthcare and social assistance sector matching headline inflation (3.8% vs 3.8% YoY), while all other industries saw real wages decline to varying degrees.

When you look at a chart of wage growth by industry, such as the one below put together by AMP’s Shane Oliver, the role of government in the nation’s earnings growth is swiftly clear.