More evidence of softening wage growth

The December quarter’s soft wage growth data from the Australian Bureau of Statistics (ABS) was confirmed by SEEK’s Advertised Salaries Index, which decelerated sharply over the two month’s to January:

The Q4 National Accounts also showed that average compensation of employees has fallen sharply in real terms, slumping to 2012 levels:

Interestingly, the Melbourne Institute last week reported that the share of Australian workers reporting rising pay has fallen (black line below):

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.