3 years ago
DELOITTE: RECORD LOW WAGES GROWTH SET TO WORSEN
JIM CHALMERS MP
In its latest Business Outlook, Deloitte Access Economics forecasts Australia’s recovery will be defined by even weaker wages growth and remains hostage to the vaccine rollout and withdrawal of government support.
While the rebound in our economy is expected and welcome, Australians’ jobs and livelihoods are being threatened by Morrison’s premature cuts to JobKeeper, his bungled vaccine rollout and his attacks on wages and incomes.
The Deloitte report attributes much of the recovery to the easing of restrictions, but is still being held back by labour market weakness, record low wages growth, low levels of business investment and poor productivity.
Wages growth is expected to fall to new record lows of 1.2 per cent in 2021-22, following years of wages stagnation.
According to the Outlook:
While the rebound in our economy is expected and welcome, Australians’ jobs and livelihoods are being threatened by Morrison’s premature cuts to JobKeeper, his bungled vaccine rollout and his attacks on wages and incomes.
The Deloitte report attributes much of the recovery to the easing of restrictions, but is still being held back by labour market weakness, record low wages growth, low levels of business investment and poor productivity.
Wages growth is expected to fall to new record lows of 1.2 per cent in 2021-22, following years of wages stagnation.
According to the Outlook:
- “The big bump from a reopening economy will gradually ease from here, while emergency government assistance continues to fall away. That will make further catch up growth more of a grind.”
- “Wage growth has been low over the past decade, and strikingly low over the past five years. So its further step down during the COVID crisis means that wage gains are already plumbing previously unexplored depths.”
- “Unemployment is going to take quite some time to get down to the point that it gooses wages”
- “Wage gains were only a little over 2% when COVID hit, and we forecast they’ll only return to that relatively sluggish rate by mid-2024.”
Australians deserve credit for suppressing the virus and working together to keep our economy moving, and a government that’s on their side and won’t leave them behind in the recovery.
Instead of a plan to create secure, well-paid jobs, the Morrison Government’s vaccine debacle, cuts to JobKeeper, cuts to superannuation, attacks on job security, and a budget riddled with rorts, will make things worse.
Australia must do better than return to the economic weakness and mismanagement which has defined much of the Liberal-National Government’s eight long years in office.
Only Labor is fighting to build an economy that is stronger and fairer after the pandemic than it was before.
Next month’s Budget can’t be yet another Budget of missed opportunities which wastes the recovery, leaves too many Australians behind, and fails to invest in people, their jobs and the future.