Prepare for more labour market pain

Soft wage growth provides further evidence of rising spare capacity in the economy as many Australians struggle to find work. The Coalition's ill-timed welfare cuts will make matters worse.

Wages excluding bonuses rose by 0.7 per cent in the March quarter, consistent with market expectations, to be 2.6 per cent higher over the year. Australian wages are growing at their slowest annual pace in at least 16 years (the measure only goes back to 1998).

Private sector wages continue to be weak, rising by just 2.6 per cent over the year. By comparison, public sector wages rose by 0.8 per cent in the quarter to be 2.9 per cent higher over the year.

Graph for Prepare for more labour market pain

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