One reason Australian wages are depressed? Formidable employer power
1 year, 9 months ago

One reason Australian wages are depressed? Formidable employer power

ABC  

The level of employer concentration in some of Australia's labour markets is so high that powerful employers are suppressing workers' wages. Key points: The impact on wages paid by dominant employers is getting worse in Australia A Treasury paper suggests employer dominance suppressed wages in the years before the pandemic Weaker bargaining power among workers is also impacting wages growth Those are the findings from a new Treasury working paper. 'Monopsony' power and weak wage growth The Treasury working paper, written by Jonathan Hambur, is titled, "Did labour market concentration lower wages growth pre-COVID?" It's a real problem for regional workers Dr Leigh says the Treasury paper provides more evidence of deep problems in Australia's economy, exemplified by the past decade of anaemic wage growth. As unions lose power, employers gain power The Treasury working paper says a key driver of the increased impact of employer concentration, and lower wages growth, has been declining firm entry and dynamism because established businesses are facing less competition from new entrants.

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History of this topic

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March
1 week, 5 days ago

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March

ABC  

Australia's unemployment rate fell to 3.9 per cent in November, down from 4.1 per cent in October. "The only downside to Australia's remarkably strong job market is that any hope of a near-term interest rate cut is over," said Callam Pickering, APAC economist at global job site Indeed. "Today's blockbuster November employment report seemingly pushes back — yet again — …

Economists want more unemployment. But do they care how the jobless will be treated?
1 year, 5 months ago

Economists want more unemployment. But do they care how the jobless will be treated?

ABC  

Are too many people employed right now? When "full employment" was introduced to Australia by the Curtin and Chifley Labor governments, by the 1945 White Paper on Full Employment, they created a new labour market institution to support it. The logic of market competition Now, things changed for the CES when Australia's government abandoned full employment as official policy in …

Real wages are shrinking as profits are soaring. But are most businesses really raking it in?
2 years, 4 months ago

Real wages are shrinking as profits are soaring. But are most businesses really raking it in?

ABC  

The government's jobs and skills summit is less than a fortnight away but there is still intense disagreement over exactly what problems actually exist in Australia's labour market. Key points: The wages share of national income is around record lows, just below 50 per cent The mining profits share of national income has surged during recent years The finance sector …

Unemployment may soon dip below 3 per cent and is set to stay below 5 per cent for years to come
2 years, 4 months ago

Unemployment may soon dip below 3 per cent and is set to stay below 5 per cent for years to come

ABC  

Unfathomably, Australia's unemployment rate has sunk to 3.5 per cent. In the years before COVID, typically 3 per cent of the workforce worked less than usual hours in any given week as a result of illness or injury. In the half century we have been collecting modern employment statistics, unemployment has shot up dramatically three times: in the mid-1970s, when …

In New Zealand wages are growing. Will Australian workers' pay packets get a bump?
2 years, 4 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 …

Even with unemployment low, wages fall behind cost of living. Can politicians get you a pay rise?
2 years, 7 months ago

Even with unemployment low, wages fall behind cost of living. Can politicians get you a pay rise?

ABC  

For some time, our federal politicians have argued that wages will grow when unemployment is lower, and they will moderate when unemployment is higher. "We have reviewed the data on wage growth in Australia, and something happened after about 2013," said Dr Jim Stanford, who co-authored the report, The Wages Crisis: Revisited, along with Professor Andrew Stewart from Adelaide Law …

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

Sydney's second city-wide COVID lockdown is hitting jobs harder than its first
3 years, 3 months ago

Sydney's second city-wide COVID lockdown is hitting jobs harder than its first

ABC  

The extended lockdowns in Sydney have hit its payroll jobs harder than last year's lockdowns, with construction jobs hit significantly hard, economists say. Key points: Payroll jobs have fallen 8.9 per cent in Greater Sydney since lockdowns began In the same period, payroll jobs have fallen 3.8 per cent in New South Wales Economists say the negative momentum is accelerating …

Unemployment rate dropped early in lockdown as people gave up looking for work, data reveals
3 years, 4 months ago

Unemployment rate dropped early in lockdown as people gave up looking for work, data reveals

ABC  

Australia's official unemployment rate dropped early on in the latest round of lockdowns, as the number of people looking for work fell. Key points: Unemployment fell to 4.6 per cent last month, from 4.9 per cent in June The unemployment rate is the lowest it has been since December 2008 The ABS says a huge fall in labour force participation …

Unemployment below pre-pandemic levels as jobs surge resumes. Will wages rise?
3 years, 6 months ago

Unemployment below pre-pandemic levels as jobs surge resumes. Will wages rise?

ABC  

From fears of mass unemployment to worries about labour shortages, Australia's jobs market has staged a dramatic turnaround since the COVID-19 pandemic hit our shores. Key points: Unemployment falls from 5.5 to 5.1 per cent An estimated 115,200 jobs were added, the vast majority full-time The underemployment rate also fell from 7.8 to 7.4 per cent, a seven-year low For …

Unemployment is back near pre-pandemic levels. A CBA economist says missing foreign workers are one reason why
3 years, 6 months ago

Unemployment is back near pre-pandemic levels. A CBA economist says missing foreign workers are one reason why

ABC  

We know employment in Australia has rebounded strongly from the recession. He says the monthly labour force data is excluding a vital element of Australia's labour force: foreign workers who've been working in Australia for less than 12 months. He says short-term foreign workers, as a share of total workers, has been fairly stable for the last 20 years, sitting …

Superannuation rises could come at the cost of wages — workers may end up paying for their own super rise
3 years, 6 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 …

The COVID-19 pandemic helped unemployment figures, but spare capacity clouds Australia's future
3 years, 8 months ago

The COVID-19 pandemic helped unemployment figures, but spare capacity clouds Australia's future

ABC  

When it comes to jobs, Australia's recovery after the economic shock of the national, pandemic-driven lockdown has been nothing short of astonishing, at least if you check the headline numbers. In February, the unemployment rate dived to 5.8 per cent, way below the 6.3 per cent jobless rate in January, a performance that stunned pundits and professional economic soothsayers alike. …

'Militant' unions are a thing of the past — just like strong wages growth
4 years ago

'Militant' unions are a thing of the past — just like strong wages growth

ABC  

One of the hardest things to learn as you get older is how difficult it is to persuade someone with facts alone. In 1993, the Keating Labor government passed the Industrial Relations Reform Act which legislated the full introduction of enterprise bargaining, and for the first time in Australia's history, a limited "right to strike". Back in 2017, long before …

Australians were suffering from weak wages growth long before the coronavirus pandemic
4 years, 3 months ago

Australians were suffering from weak wages growth long before the coronavirus pandemic

ABC  

Think about your income. Growth in real household disposable income has averaged 3.1 per cent since 2007, but between 2016 and 2019 it averaged just 1.4 per cent. "If the income-tax paid share was reduced to 13.7 per cent, the average of the period since 2002, $13 billion less taxes would have been paid over the past 12 months, representing …

Unemployment rate falls but job seekers say finding work is still 'really hard'
4 years, 3 months ago

Unemployment rate falls but job seekers say finding work is still 'really hard'

ABC  

Australia's unemployment rate is falling, but those without work say it is not getting any easier to find a job, especially in locked-down Victoria. Key points: The official ABS unemployment rate has fallen from 7.5 per cent in July to 6.8 per cent in August The percentage of underemployed people, who wanted to work more hours than they did, remained …

Why company profits have jumped in Australia during COVID-19 while workers are taking home less
4 years, 3 months ago

Why company profits have jumped in Australia during COVID-19 while workers are taking home less

ABC  

The share of national income going to Australia's workers has been steadily declining since the 1970s, with the profit share increasing. It said company profits jumped by a massive 14.9 per cent in the quarter, while the total wages-and-salaries bill for workers fell by a record 2.5 per cent. He said data shows so-called "average non-farm compensation per employee" actually …

Wages growth slows, consumer confidence plummets amid coronavirus outbreak
4 years, 4 months ago

Wages growth slows, consumer confidence plummets amid coronavirus outbreak

ABC  

Wages are growing at their slowest pace in 22 years as the coronavirus impact on the labour market spreads to pay rates. Key points: Wages increased just 1.8 per cent over the year to June 30 Private sector wages have borne the brunt of the wage slowdown Consumer confidence has collapsed again, after the Victorian Government imposed stage 4 restrictions …

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