Inflation means your wages are worth less. Will they rise to catch up?
2 years, 5 months ago

Inflation means your wages are worth less. Will they rise to catch up?

ABC  

At a seaside restaurant in Sydney, Joe Natale can't get staff – and can't pay them more than the wages he's already raised. Key points: Most wages aren't rising as quickly as inflation, so there's a cut in 'real wages' for workers Wage data is out next month, but some indicators say it is rising Employers are struggling to pay wage rises because other material costs have gone up, but customers struggle to absorb price rises "We've had to cap our bookings, we've had to eliminate takeaway. Mr Natale is weighing up if he needs to close one of his four venues in the Cronulla area, because the staff he's seeking want wages he can't offer. " Mr Natale's response is to offer a high wage, with training: "They've come back with, 'Hey, that's the going rate.'" "The wage price index has risen 2.6 per cent over the past year," says Catherine Birch, a senior economist at bank ANZ.

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History of this topic

Wage growth could still push inflation up, says BoE policymaker
7 months, 2 weeks ago

Wage growth could still push inflation up, says BoE policymaker

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Catherine Mann, a rate setter …

Wages are rising 3.2% above inflation - the highest in nearly three years - as prices subside and jobs market holds steady... despite Rachel Reeves' grim claims that the economy is worse than she thou
8 months, 1 week ago

Wages are rising 3.2% above inflation - the highest in nearly three years - as prices subside and jobs market holds steady... despite Rachel Reeves' grim claims that the economy is worse than she thou

Daily Mail  

Wages are rising 3.2 per cent above inflation with the jobs market holding steady, according to new figures today. Regular pay is increasing at the fastest pace in nearly three years relative to prices, after CPI inflation returned to the Bank of England's 2 per cent target. Wages are rising 3.2 per cent above inflation with the jobs market holding …

Spare us the talk about a wages explosion. There's nothing wrong with lifting Australia's lowest wages in line with inflation
9 months, 3 weeks ago

Spare us the talk about a wages explosion. There's nothing wrong with lifting Australia's lowest wages in line with inflation

ABC  

What is it with the Coalition and wages? Now, two years on, after yet another Fair Work Commission decision that lifted award wages in line with inflation, the Coalition has returned to the fray. On Monday, shadow finance minister Jane Hume asked Treasury Secretary Steven Kennedy at a Senate hearing how he could support a wage increase linked to inflation …

Wages are rising rapidly – what does this mean?
1 year, 7 months ago

Wages are rising rapidly – what does this mean?

The Independent  

The headline news is that average – there are plenty of variations – pay rose by 7.8 per cent in the second quarter of the year, as compared with the same period last year. Even so, because of still rapid wage growth, mostly unsupported by any improvement in productivity, inflation may take much longer to get from 5 per cent …

Inflation now driven by demands for higher wages, warn businesses
1 year, 8 months ago

Inflation now driven by demands for higher wages, warn businesses

The Telegraph  

Inflation is now being driven by higher wages as companies pass on rising salary costs to their customers, bosses have warned. The economy is slowing sharply, with the manufacturing sector shrinking and the dominant services industries running out of steam, according to the purchasing managers’ index, an influential survey from S&P Global. Price rises are slowing from last year’s highs …

Andrew Bailey blames high wages for causing inflation
1 year, 9 months ago

Andrew Bailey blames high wages for causing inflation

The Telegraph  

Andrew Bailey has blamed “unsustainable” pay rises for stoking inflation as the Bank of England lifted interest rates to 5pc in an attempt to tame rampant price growth. Speaking after Threadneedle Street announced a larger-than-expected increase in rates of 0.5 percentage points, the Governor warned that pay “cannot continue” going up at its current pace if inflation is to fall. …

Extra billions flowing into budget but real wages not tipped to grow for another year
1 year, 10 months ago

Extra billions flowing into budget but real wages not tipped to grow for another year

ABC  

Workers will have to wait another year before their wages outstrip the rising cost of living, according to Treasury forecasts to be released next week. Key points: Unemployment will be 3.5 per cent this year, rising to 4.25 per cent in June 2024 Higher commodity prices will also add extra billions to the budget's bottom line The greater revenue has …

Will wages outpace inflation for long? It depends on the job
1 year, 10 months ago

Will wages outpace inflation for long? It depends on the job

CNN  

Washington, DC CNN — Wages are now finally beating inflation, according to the latest quarterly data on wage growth. Workers who switched jobs are still raking in higher wages than those who choose to stay; and employees in industries struggling to hire, such as leisure and hospitality, are also enjoying fatter paychecks, economists said. “The folks who left one company …

Profits have driven inflation while wages lag behind, argue economists
2 years, 1 month ago

Profits have driven inflation while wages lag behind, argue economists

ABC  

Increasing profits going to corporate Australia have accounted for more than two-thirds of the nation's inflation problem, according to new research from the Australia Institute. "Measured per unit of real output, corporate profits were 30 per cent higher as of the September 2022 quarter than before the pandemic started, less than three years earlier. Excess profits driving interest rates higher …

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it
2 years, 1 month ago

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it

ABC  

Higher prices, that is. The Reserve Bank summed this up in this week's Monetary Policy Decision: "Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy." "There's no doubt that corporations have taken advantage of the supply chain problems and the desperation of consumers …

An unexpected job surge confounds the Fed’s economic models
2 years, 1 month ago

An unexpected job surge confounds the Fed’s economic models

Associated Press  

WASHINGTON — Does the Federal Reserve have it wrong? “Like $20 bills on the sidewalk and free lunches, falling inflation paired with falling unemployment is the stuff of economics fiction.” In economic models used by the Fed and most mainstream economists, a job market with strong hiring and a low unemployment rate typically fuels higher inflation. Chair Jerome Powell has …

Westpac's warning to corporate Australia highlights extent of households' financial stress
2 years, 3 months ago

Westpac's warning to corporate Australia highlights extent of households' financial stress

ABC  

Actually, don't answer that. "By industry, the largest rise in wage bill in the three months to September was for accommodation and food services, up 7.7 per cent," Deutsche Bank chief economist Phil O'Donaghoe said. "And on the annualised basis, accommodation and food service workers saw a whopping 40 per cent increase in average wages over the past six months. …

Will Australian policymakers ever want to see strong wage growth again?
2 years, 4 months ago

Will Australian policymakers ever want to see strong wage growth again?

ABC  

One of the joys of life is thinking about things in a way you're not supposed to, and that includes questioning the orthodoxy. It also contained some comments from Mr Jericho about Australia's "inflation-targeting" regime that has been in place since 1993. Who does inflation targeting really serve? "Inflation targeting in Australia since 1993 has not been neutral," Mr Jericho …

In New Zealand wages are growing. Will Australian workers' pay packets get a bump?
2 years, 7 months ago

In New Zealand wages are growing. Will Australian workers' pay packets get a bump?

ABC  

The cost of living is soaring. Key points: Without high wage growth, inflation means workers' living standards will decline Wage growth has been low for a decade Wages in New Zealand are rising to meet inflation So are wage rises coming? The Reserve Bank of Australia see wages rising about 3.5 per cent next year, but that's a significant pay …

Australia's inflation figures are clear, but when it comes to official wages data, we might be flying blind
2 years, 7 months ago

Australia's inflation figures are clear, but when it comes to official wages data, we might be flying blind

ABC  

There's a bizarre lack of clarity over a particularly crucial economic data point that affects every Australian. Forecasting a peak in inflation to 7.75 per cent by the year's end, the Treasurer says Australians must brace to take some "tough medicine" if the nation is to escape a recession. That is, NAB's analysis has found wage growth increased 2.5 per …

Will lifting the minimum wage worsen inflation and raise interest rates?
2 years, 10 months ago

Will lifting the minimum wage worsen inflation and raise interest rates?

ABC  

Wages have become the latest battleground in the election, with debate raging about how much extra workers can get paid without sending businesses broke and consumer prices soaring. Key points: The Fair Work Commission is due to hand down its annual minimum wage decision in June Unions say 5.5 per cent is a fair increase while employer groups want no …

Will rising wages push inflation even higher?
3 years, 2 months ago

Will rising wages push inflation even higher?

NPR  

Will rising wages push inflation even higher? SCOTT HORSLEY, BYLINE: The Labor Department said today that if you count both wages and benefits, employers were paying 4% more for workers in December than they were a year ago. Those wage gains and better benefits are good for workers, but the Federal Reserve has been on the lookout for any warning …

MYEFO is forecasting a long-awaited rise in wages, but it doesn't mean it will happen
3 years, 3 months ago

MYEFO is forecasting a long-awaited rise in wages, but it doesn't mean it will happen

ABC  

As New York Yankees catcher and amateur philosopher Yogi Berra once noted: "It's tough making predictions, especially about the future." Almost two years on from that fateful night — which preceded a global pandemic, the worst recession in nearly a century and a $311 billion Commonwealth stimulus package — there is still no surplus in sight, with ongoing deficits adding …

US economists see higher wages feeding inflation for 3 years
3 years, 3 months ago

US economists see higher wages feeding inflation for 3 years

Al Jazeera  

A new survey shows nearly three-quarters of US economists don’t see inflation falling to the Fed’s target 2-percent rate until the second half of 2023 or later. Nearly three quarters – 71 percent – of the 48 economists surveyed see the Federal Reserve’s preferred inflation gauge – Personal Consumption Expenditures minus food and energy – not falling to or below …

Superannuation rises could come at the cost of wages — workers may end up paying for their own super rise
3 years, 9 months ago

Superannuation rises could come at the cost of wages — workers may end up paying for their own super rise

ABC  

Workers expecting a big jump in their superannuation payments could get a shock on July 1. Key points: The superannuation guarantee is the proportion of wages employers must contribute to workers' retirement savings It's set to rise from 9.5 per cent to 10 per cent from July 1 But employment lawyers and others are warning some bosses may make workers …

Employment experts bust myths about your wages - so how does your salary compare?
5 years, 2 months ago

Employment experts bust myths about your wages - so how does your salary compare?

Daily Mail  

Almost half of all Australian workers think they are being underpaid when in reality their salaries are in line with colleagues and years of stagnant wages growth are to blame for low incomes. That's an increase of six percent from two years ago but the researchers said most people were mistaken for feeling underpaid with stagnant wages growth instead resulting …

Reserve Bank staff handed sub-inflation pay rise
7 years, 8 months ago

Reserve Bank staff handed sub-inflation pay rise

ABC  

Reserve Bank of Australia employees will receive average pay rises of just 2 per cent a year over the next three years - below the current rate of inflation and Treasury forecasts of inflation - despite the Reserve Bank governor encouraging workers to rise up and demand higher pay. RBA staff who "meet expectations" in their job will only receive …

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