The share of GDP going to workers hits a record low
The latest GDP figures show more than ever before workers are getting less than their fair share
Today’s GDP figures provide yet more evidence that inflation is not being driven by rising wages and that workers are receiving less of the national income than ever before.
In the June quarter just 44.1% of GDP went to the Compensation of Employees. At the same time the share going to corporate profits rose to 29.9% – a level that is higher than any other time except for the abnormailty of the 2020 when JobKeeper payments boosted profits.
In the past year the real unit cost of labour has fallen 4.9%. This is yet more evidence that the recent rise in inflation has nothing to do with rising wages, and instead focus should be on rising profits as workers continue to be hit by rising cost of living and poor wages growth.
Related research
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Stage 3 Better – Revenue Summit 2023
Presented to the Australia Institute’s Revenue Summit 2023, Greg Jericho’s address, “Stage 3 Better” outlines an exciting opportunity for the government to gain electoral ground and deliver better, fairer tax cuts for more Australians.
“Shocking” near-zero growth a sign that rates are hurting the economy – Jericho
High interest rates have dramatically slowed the economy, pushing many households to their limits, says Greg Jericho.
Cashing in on a crisis
Super profits have driven up inflation, robbing all but the wealthiest Australians, says Greg Jericho.