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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza