Real income in Australia shrinks as wage growth trails behind inflation
Workers in Australia have seen their wages rise by 0.7% to 2.4% in the March 2022 quarter, according to data by the Australian Bureau of Statistics. However, this fell short of the inflation rate for the March quarter, at 5.1%.
In terms of sectors, rental, hiring and real estate services had the highest annual wage growth at 3.1%. This is followed by manufacturing and professional, scientific and technical services, which experienced a wage growth of 2.7%. Meanwhile, electricity, gas, water and waste services saw the least wage growth at only 1.5%.
New South Wales, Victoria, South Australia and Tasmania recorded the highest quarterly rise of 0.6%, while the Northern Territory recorded the lowest quarterly growth rate at 0.3%.
The Australian Council of Trade Unions (ACTU) has highlighted that the gap between inflation and workers’ pay rises meant workers were on track to be A$4,000 (US$2,788) worse off on average this year in real terms, or five times the loss in 2021, reports The Guardian.