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.”