Guest BurgessFamily

Annual wage growth slowest on record

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    Guest BurgessFamily

    I guess it's simply supply and demand, i.e. less jobs for more workers.


    The official measure of wage growth has recorded its slowest growth on records that go back to 1997.


    Still, some good news for SA...


    South Australia had both the best public and best private sector pay increases last year, and also the biggest overall rise in the December quarter of 0.8 per cent.



    Overall it makes sense with the amount of jobs being lost across board...


    Sensis has confirmed it is looking to cut about 800 jobs across the nation, with the possibility that some of the work will be sent offshore


    Edited by BurgessFamily

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    Ah those twin laws of supply and demand.



    When labour is in demand wages go up as employers compete with one another for the scarce resource – this has an inflationary effect and apparently isn't good for the economy. When labour is in good supply or where there is an over-supply then wages go down as workers compete with one another (theoretically anyway) for work and will try to undercut one another. This is apparently good for the economy as it is anti-inflationary.



    And unemployment is required for our economy to work to avoid the inflationary effect of “full employment”.



    If anyone can find any common sense in this I would love to hear it.

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