Money There's still no sign of a wage pickup in Australia

12:06  16 may  2018
12:06  16 may  2018 Source:   businessinsider.com.au

The NAB no longer sees a RBA rate hike this year

  The NAB no longer sees a RBA rate hike this year Australian wage and inflationary pressures remain weak, making it harder to justify rate hikes from the RBA.The National Australia Bank (NAB) no longer sees the Reserve Bank of Australia (RBA) lifting official interest rates this year, continuing the pattern seen among major bank forecasters in recent months.

Reserve Bank of Australia (RBA) governor Philip Lowe has a message for Australian workers. After years of declining wage growth, it looks like that Taking into account underemployed workers, labour market underutilisation sits at 14.4%, indicating that there ’ s still an ample supply of available labour.

Data raises doubts over whether a pickup in wage growth will be seen in the years ahead, a key factor underpinning the RBA’ s forecasts for faster Sign up for free at research.businessinsider.com.au. australian stories australia economy and markets labour market monetary policy rba wage price index.

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Australia's March quarter wage price index (WPI) has come in below expectations.

According to the Australian Bureau of Statistics (ABS), hourly wage growth excluding bonuses rose by 0.5% in the March quarter, missing expectations for an increase of 0.6%.

The December quarter WPI was also revised lower to a gain of 0.5%, below the 0.6% rate originally reported.

The WPI measures changes in ordinary hourly rates of pay, not the amount of hours worked or compositional changes in the workforce. Just hourly wage rates excluding bonuses.

"Wage growth in the March quarter 2018 continues a period of subdued first quarter rises, primarily driven by regular increases in the Education and training and Health care and social assistance industries," said ABS Chief Economist Bruce Hockman.

The RBA doesn't sound very confident about the outlook for Australian wages

  The RBA doesn't sound very confident about the outlook for Australian wages RBA banking on wage growth to boost economic growth and lift inflationary pressures. Not confident it will pick up by any meaningful amount in the period ahead.That was clear to see in a speech delivered today by RBA deputy governor Guy Debelle, in which he all but admitted the risks for the bank's wage growth outlook are currently to the downside.

For Australia , where unemployment and underemployment still sits at elevated levels, it’s little wonder why many think it will be a long time yet until there ’ s a pickup in wage growth. Sign up for free at research.businessinsider.com.au.

Wages growth in Australia . Source: ABS.Source:Supplied. DEBATE about the rising cost of living is hotting up as workers struggle to get payrises and Australians begin to question why they are still doing it so tough. Despite signs of an improving economy

Despite the downside miss, the annual rate held steady at 2.1%.

Comment: Australia's economy will come back to 'haunt' Scott Morrison's optimistic budget projections

  Comment: Australia's economy will come back to 'haunt' Scott Morrison's optimistic budget projections Australia's budget position is the best it's been in the post-GFC era, helped by stronger commodity prices and employment growth over the past year. It has allowed treasurer Scott Morrison to cut income taxes and project a return to a budget surplus one year ahead of schedule, an outcome that few would have expected just 12 months ago.However, as any forecaster knows, it's always dangerous to extrapolate near-term movements over a longer time horizon.

Classifieds. Directory. Login Sign up . There ’ s a federal minimum wage in Australia , which in 2004 was 7.40 per week (the unions are lobbying for it to be raised to 4), but most job sectors are bound by ‘award’ wages , which are set for different industries, professions and trades through a

Australia shows why raising the minimum wage doesn’t always fix poverty. Written by. Luke Ryan. August 01, 2016. There ’ s still an excellent argument to be made for raising the minimum wage , but it may not be the anti-poverty one that its most ardent proponents believe.

However, that masked some unwelcome news for those working in the private sector workers, the largest employer in Australia.

The ABS said private sector wages grew by just 1.9%, the same pace as consumer price inflation over the same period.

That means for the vast majority of workers, real wage growth went nowhere over the year.

In comparison, public sector wages outperformed, lifting by 2.3% over the year.

Without seasonal adjustments, the ABS wage growth over the year ranged from 1.4% in the mining industry to 2.7% for health care and social assistance workers.

Victorian and Tasmanian workers received the largest increase over the year at 2.3%. At the other end of the spectrum, those workers in the Northern Territory saw their average wage lift by just 1.1, the weakest level across the country.

More to follow...

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Source: http://au.pressfrom.com/news/money/-64208-theres-still-no-sign-of-a-wage-pickup-in-australia/

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