Bill Mitchell — Australia – wages growth remains flat with no household consumption boom in sight

Summary:
On Wednesday last week (May 19, 2021), the ABS released the latest – Wage Price Index, Australia – for the March-quarter 2021. The WPI data shows that nominal wages growth remains suppressed and workers were able to glean only the most marginal real improvement in purchasing power. Public sector workers endured real wage cuts. The public sector is clearly not demonstrating leadership with their ridiculous wage freezes and wage caps stifling wages growth not only in the public sector but also via the spillover effects to the private sector. Most sectors went backwards in real terms and it was only the annual minimum wage adjustment that saw gains in some sectors – militating against any narrative that suggests that the market is driving inflationary pressures. Not even close.... Bill

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