Three days before the federal election, new ABS data confirmed that Australian wage growth is still stuck at historically weak rate (up just 2.4% year over year to March 2022). One day later, another ABS release showed another small decline in the unemployment rate, which is now below 4%. Most of the decline was due to people leaving the labour market (rather than new jobs being created). But the data is being cited by the current government as a sign that better wage growth is just around the corner.

Key Points: Unemployment falls 0.1% to 3.9% 4,000 jobs created in last quarter, but unemployment fell by 11,000 7,000 people gave up looking for work this quarter, shown by the participation rate falling to 66.3% (from 66.4%) “Today’s ABS statistics reveal that more people gave up looking for work than found a job in the

The release of the March Wage Price Index confirms what a horror year it has been for workers. While inflation in the past 12 months rose 5.1%, wages grew just 2.4%. Even worse, in the past year the price of non-discretionary items rose 6.6%, meaning for those on low wages, who spend more of their incomes on essential items, real wages would have fallen even more than the 2.6% average fall.

The debate over wages, prices, and living standards heated up even further this week, with the release of new ABS statistics showing continuing weakness in wages despite the acceleration of inflation. The latest data from the ABS Wage Price Index (WPI) shows nominal wages grew just 2.4% over the 12 months ending in March. That is less than half as fast as consumer prices grew (5.1%), producing the biggest decline in real wages this century.

The Fair Work Commission recently announced important changes to the SCHADS Award (which sets minimum standards for workers in home care, disability services, community agencies, and other vital services) as part of its award review process. This culminates several years of research and advocacy by unions representing workers in these sectors, aimed at improving job quality and stability in these vital but undervalued positions. The Centre for Future Work provided expert testimony to the Commission as part of its review.

“The latest wages data show that real wages in the past 12 months fell 2.5%. This horror result for workers shows that not only are wages not putting pressure on inflation but that workers are not seeing the benefits of lower unemployment,” said Greg Jericho, employment & fiscal policy director at the Australia Institute’s Centre

Research released today reveals that companies like Woolworths and the Commonwealth Bank are under no pressure to pass on a 5% increase in the minimum wage as a 5% increase in their prices. The research finds that boosting workers’ wages by 5%  would lead to an increase in prices across the economy of less than

Every three months the Bureau of Statistics releases the lesser-known cousin of the consumer price index. It’s called the Wage Price Index (WPI) and it records changes in the overall level of wages, in the same way the price index records changes in the overall level of consumer prices.

Almost one in five Australians (and a higher proportion of young workers) acknowledge working with potential COVID symptoms over the course of the pandemic, according to new opinion research released today by the Australia Institute’s Centre for Future Work. The research confirms the public health dangers of Australia’s patchwork system of sick leave and related

The current election campaign has seen the two major parties put forward housing policies, both of which to varying degrees are aimed at the demand side of the equation.

This week the election campaign has turned to discussion about the increase to the minimum wage, with suggestions that an increase either in line with the curent rate of inflation of 5.1% or marginally above it (such as the ACTU’s proposal of a 5.5% increase) would bring about a return to 1970s style wage sprials.

While it makes economic and political sense to suggest, as Anthony Albanese has, that the minimum wage, and indeed most wages, rise inline with the rate of inflation Scott Morrison has suggested such a move would be ‘reckless and dangerous’. What’s far more dangerous and reckless is letting real wages and consumer spending fall just

A comprehensive review of Australian wage trends indicates that wage growth is likely to remain stuck at historically weak levels despite the dramatic disruptions experienced by the Australian labour market through the COVID-19 pandemic. The report finds that targeted policies to deliberately lift wages are needed to break free of the low-wage trajectory that has

Today the opposition leader, Anthony Albanese was asked about wages in the following exchange: Journalist: “You said that you don’t want people to go backwards. Does that mean that you would support a wage hike of 5.1% just to keep up with inflation? Anthony Albanese: “Absolutely”. Any other response would be to suggest that real

Surging inflation is driving record increases in government tax revenue while simultaneously pushing down workers’ real wages, according to new Australia Institute analysis of Treasury forecasts released today. As the figure below shows, Treasury forecasts of Commonwealth spending are well above the spending forecasts made pre-covid and, more significantly, well above the levels forecast in

A new report has found pandemic workforce shortages should be tackled through investment in Early Childhood Education and Care (ECEC) to boost employment, unlock productivity and support life-long development outcomes for children.

For most of the past decade the talk about housing affordability has focussed on house prices. As fiscal policy director, Greg Jericho notes in his Guardian Australia column, falling interest rates since November 2010 have made paying off a mortgage less onerous than it otherwise would have given the soaring house prices.

The key driver of Australia’s acute housing affordability crisis is its over-reliance on just two housing options – private home ownership and private renting. New research from the Australia Institute’s Nordic Policy Centre shows that Nordic countries have a wider repertoire of policies, and Australia can learn from policies that are already in practice in

The March CPI figures showing that inflation rose 5.1% over the past 12 months is not just the highest level since the introduction of the GST it also signals the biggest fall in real wages since then as well.

The next federal government can save universities, make undergraduate education free for all Australians and employ tens of thousands of staff securely by lifting the public spend on higher education to just one per cent of GDP, according to a landmark new report. The Australia Institute’s Centre For Future Work report shows, if the federal

New research has found that the Federal Government’s announcement that it will spend $7.4b on dams does not deliver value for money and provides less employment and GDP growth than if the same amount were invested in other parts of the economy. The research reveals that if the $5.4b announced for the Hells Gate Dam

Business groups and conservative media are happy to discuss insecure work as if it is nothing new – stable and part of a healthy economy that provides workers with independence. But this is not the case, with insecure forms of work – casual, gigs, temporary work and short-term contracts – taking up a growing share of jobs in Australia.

Australia should follow the European example and introduce a Youth Job Guarantee, according to a new report from the Australia Institute which reveals the true extent of youth employment devastation during the pandemic. Despite representing just 14 per cent of workers, the new report, ‘Youth unemployment and the pandemic’, shows young people (aged 15-24) bore 39

The election campaign thus far has been dominated with gotcha questions that unfortunately have missed the vital need to examine the different policies on offer at a time when Australia’s economy is in a state of extreme flux.

The only people in Australia who can boost wage growth are employers and the only way they can do that is by giving people pay rises.

Making Early Child Education and Care (ECEC) universal in Australia would pay for itself by unlocking women’s labour supply, boosting GDP and growing government revenues by billions, according to new research from the Australia Institute’s Centre for Future Work. With cost of living shaping up as a key election issue, policy experts say boosted funding would