wages economics Alan Krueger

Australia's private sector workers, unless they're in health, face many more years of stagnant incomes -- and they'll be permanently one inflation spike away from a serious drop in real wages.

Appearing before the House of Representatives Standing Committee on Economics in Sydney on Friday, RBA Governor Phillip Lowe described how poor wages growth has significantly affected the economy. "Since 2016, aggregate household disposable income has grown at an average rate of around 2.75% per year. This is down from an average of 6% over the preceding decade. It is plausible that households have responded to this extended period of weaker income growth by progressively downgrading their spending plans. For many people, it has become harder to see the lower growth in income as just a short-term development that can be looked through."