Wage price index growth plumbs new record lows

The price of labour has been growing exponentially over the last few years. How much to both pay staff and earn as a salary is a highly emotive issue. Both parties attempt to handle the topic dispassionately, how well is of course a matter of opinion.

Looking nationally at some of the national trends is important to understand the pressures that are bearing down on the topic of wages.

I found this article in the Age by Peter Martin really interesting as it reflects the different views about why wage growth rates are low. He quotes: “Commonwealth Bank economist John Peters as saying the spike in unemployment to 6.4 per cent in January 2015 had toned down workers’ pursuit of higher wages this year.”

Martin does show up both sides of the argument, by quoting Commonwealth Securities economist Savanth Sebastian as saying in part: “It is clear that real wage gains are still boosting consumer purchasing power.”

We need to look at both sides of the wage discussion in order to ensure the wages we pay ourselves and our people fit into what is happening in the overall wage market.

Barbara Craven
Beaumont Advisory

Beaumont Advisory specialises in supporting business in the Eastern Growth Corridor to grow in spite of their business challenges. We support business leaders with Business Advice, Managing Change, Commercial law and general management.