Public Sector Wages Breakout
Average Weekly Earnings data was released today by the ABS. It shows annual wages increase of 5.7% for the public sector versus 2.1% in the private sector. This is a big differential at 3.6%. Given a tight labour market and shortage of skills in the profitable resource industry boom states of Queensland and WA, the pressure on private sector wage inflation must be increasing.
It's shades of the early 1970's when Australian public sector pay got out of control and an oil price surge sent world inflation into a tailspin. Conventional Household savings are at a low ebb. The Reserve Bank is studying how the consumer economy might work where savings are represented by an increase in house prices and equity portfolios rather than money in the bank. See their recent study at http://www.rba.gov.au/PublicationsAndResearch/RDP/RDP2006-07.html
Posted Thursday, 17 August 2006
Recent News
- Friday, 27 Nov 2020 - RIR and Why Oz needs a Heath System Tax (HST)
- Saturday, 11 Apr 2020 - Back to Work with Covid-19? - Not so Fast!
- Tuesday, 7 Apr 2020 - Key people charting the Australian Recovery
- Wednesday, 1 Apr 2020 - Population Mortality effects of CoVid19
For past news items, visit the News Archive.
All images and text Copyright © Financial Demographics ABN 66 196 570 592. All Rights Reserved.
Copyright Statement | Disclaimer | Privacy Policy