The reason you WON’T be getting a pay rise anytime soon – despite a record number of jobs being created in Australia as massive unemployment fall is unveiled
- Australia’s unemployment rate fell to 4.6 per cent in November post-lockdown
- In just month, 366,100 new jobs were created with more women getting work
- Treasurer Josh Frydenberg hailed this as ‘an incredible set of job numbers’
- Reserve Bank of of Australia Governor Philip Lowe said wage rises would be slow
Australia’s most powerful banker predicts wage rises will be delayed despite the unemployment rate plunging to just 4.6 per cent.
Treasurer Josh Frydenberg hailed the record 366,100 monthly surge in new jobs.
The jobless rate in November fell to 4.6 per cent, down sharply from October’s 5.2 per cent, following the end of lockdowns which saw women make up 60 per cent of the newly employed.
‘Today, Australia has seen an incredible set of job numbers far exceeding market expectations,’ Mr Frydenberg said.
‘Employment is now at a record high.’
Australia’s most powerful banker predicts wage rises will be delayed despite the unemployment rate plunging to just 4.6 per cent. Treasurer Josh Frydenberg hailed the record 366,100 monthly surge in new jobs (pictured is a waitress in Sydney)
Despite the labour market rebound, Reserve Bank of Australia Governor Philip Lowe predicted wages growth would remain weak because many workers only received pay rises during enterprise bargaining negotiations.
‘The RBA is expecting wages growth to pick up further but, at the aggregate level, to so do only gradually,’ he said on Thursday.
‘This partly reflects elements of Australia’s wage-setting processes, which create inertia in aggregate wage outcomes.
‘These processes include enterprise agreements that tend to only get renegotiated once every two to three years, the annual review of award wages by the Fair Work Commission and public sector wages policies.’
Wages growth has been below three per cent since mid-2013 but Mr Frydenberg argued the return of skilled migrants in December, for the the first time since early 2020, would in fact boost real wages, adjusted for inflation.
‘I don’t see it as a binary choice between having a sensible, measured immigration program that is helping to bring in skilled workers, family reunion, humanitarian needs as well as getting a tighter labour market, putting in the policies in place that drive real wages up,’ Mr Frydenberg said.