RBA Points to Low Wages as Boosting Employment

The Reserve Bank has confirmed what most workers already know – their pay packets been stagnating or getting lighter over the past four years.

In the minutes from its most recent meeting, the RBA points to the latest data on enterprise agreements between employers and employees which underscore the slow growth of wages.

The RBA said the low growth of wages is “already apparent” in the wage price index contained in the most recent National Accounts.

“Nominal unit labour costs had been unchanged for over four years, as the growth in employee earnings had broadly matched growth in labour productivity,” the minutes observed.

“Members noted that subdued labour costs had led to low household income growth.”

via ABC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.