The upside of falling wages

David Llewellyn-Smith

Monday 16 November 2015

Regular readers will know that Australian wages have been falling in real terms on and off for over a year:

And that is likely to continue for some time yet as the terms of trade continue to fall

But there is an upside to this increased competitiveness: more jobs. Today UBS takes a look at this dynamic:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.