Economy

May 17, 2018

Wage stagnation is a major failing of our governing class

Policymakers, refusing to accept that their wage growth thinking is deeply flawed, serve nothing but the interests of profitable corporations.

Bernard Keane and Glenn Dyer

Politics editor / Crikey business and media commentator

The forecasts tell a sad story. According to Scott Morrison back in 2016, we should currently be enjoying wages growth of 2.75% -- pathetically low by the standards of the recent years. A year later, he downgraded that to 2.5%. And last December, nearly half way through 2017-18, he dropped that to 2.25%.

With just one quarter to go, we're currently on 2.1%. And private sector workers can only dream of 2.25% -- they're on 1.9%. Many working in big industries like construction are seeing shrinking real wages despite our low inflation rate. The Reserve Bank is suggesting 2% might be the new speed limit for wages growth.

Free Trial

You've hit members-only content.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’s terms and conditions

8 comments

Join the conversation

The Crikey comment section is members-only content. Please login or sign up for a FREE trial to engage in the commentary.

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details

Sending...