Reserve Bank of Australia reveals why wage levels have been flat for years

The Reserve Bank has revealed why Australian workers are being denied pay increases. Wages have grown at a record-low pace for five years, with pay levels failing to rise above the 2.5 per cent level since 2014 They found workers were missing out, from the lowest-paid employees on awards, to professionals on individual contracts and even public servants, traditionally Australia's best remunerated salary-earners. While the situation has marginally improved, wages are still flat for public servants, with Australian Capital Territory pay levels rising by just two per cent in the year to March 2019. During the first three months of this year, public service wages across Australia grew by just 0.4 per cent, which was even weaker than the 0.5 per cent growth pace in the private sector. Reserve Bank of Australia economists James Bishop and Natasha Cassidy have explored why looking at data for 18,000 jobs from award wages to enterprise bargaining agreements and individual contracts However, for several years employees in the hospitality, retail and administrative services sectors have also endured flat wages, with 30 per cent of workers in these sectors paid the minimum award rate.