The Fair Work Commission has granted a pay increase to Australia’s lowest-paid workers for a good reason. Even with rising inflation, the economy is strong.
After decades of research showing the link between union power and wages growth, government economists don’t want to talk about it.
Australia’s unemployment rate may have to fall much more before we see any wages growth.
Governments can’t undo the technological changes behind frozen wages and rising inequality. The best policy is to invest in education and training to give workers skills of value in the new economy.
News that Australian CEO pay has soared to a 17-year high at a time when ordinary workers’ wages are flatlining is ultimately bad news for economic growth and prosperity.
Smaller Australian businesses are more productive than larger ones, but have disproportionately low levels of exports and wages.