In the Q&A after Tuesday’s address to ACOSS, assistant RBA Governor, Guy Debelle, blamed higher participation from women and older Australians for adding to labour supply and lowering wages:
“It’s ultimately fundamental economics that with demand and supply, if you run out of supply, then the price is going to go up. When demand exhausts supply, the price goes up”…
“When most people who’ve got jobs, who want jobs have got them, and there’s still opportunity out there, that’s the sort of environment where you are more likely to see wage rises. I think that’s been pretty well proven through history, and I don’t see any particular reason to give up on that at all”.
