The economy is expected to grow and there are other positive signs ahead but the mid-year economic update has revealed the government will need to keep inflation in check.
Adjusted for inflation, Australians are being paid less than they were in 2020. These 4 charts show what’s changed in how we work – and the growing gap between your pay and what you can afford to buy.
A strong revenue flow, including from a pick-up in wages, appears to have made it possible for the government to do somewhat more on welfare payments than it originally intended
Labour’s share of national income has declined since the 1970s, but there is no sense of any permanent trend.
The pay gap is growing in UK, which has seen increased strike activity this year.
Asked how high an inflation rate Australia should prepare to tolerate, three of the 48 economists nominated 8% or higher. Seven expected inflation to fall without the need for further action.
Politics with Michelle Grattan: Tony Burke advocates on wages and arts
Michelle Grattan speaks with Tony Burke the minister for employment and workplace relations and minister for the arts, as well as the leader of the House of Representatives.
Despite Albanese’s campaign hiccups, at the end of this penultimate week, based on the objective evidence, the election appears to be his to lose.
A tighter labour market than in the past is now needed to drive real wages growth.
If we want higher wages, we must win them through deliberate wage-boosting policies.
There is enough momentum for Australia’s unemployment rate to go lower than 4.2% in 2022. Keeping it low is another matter.
The Conversation’s best graphs have removed doubt, surprised, and told entire stories.
Even now much of the recovery in employment seems to be happening without big wage increases.
True wages growth, and true price growth, is probably less than the official figures suggest – meaning there’s no need for alarm about inflation in Australia.
The unemployment decline isn’t as impressive as it first appears, and wages growth remains sluggish.
Only five of the 56 economists surveyed believed lower immigration would boost wage growth. The rest backed measures to lift productivity and investment and changes that boosted the power of unions.
To drive living standards upward we need new technologies to relentlessly improve productivity.
Inflation and wage rises used to shrink the repayment burden. We’re being granted mortgages as if they still will.
A hike in the minimum wage could jeopardise Australia’s post-COVID recovery, says the Morrison government. That’s an outdated economic idea.
Without extra measures, aiming for wage growth in the aggregate will leave many Australians behind.