Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

Wage rises for Australians are in the works, RBA says

By Cameron Micallef · May 08 2019
Reading:
egg
egg
egg

Earn

Wage rises for Australians are in the works, RBA says

By Cameron Micallef
May 08 2019
Reading:
egg
egg
egg
RBA

Wage rises for Australians are in the works, RBA says

author image
By Cameron Micallef · May 08 2019
Reading:
egg
egg
egg
RBA

The Reserve Bank of Australia (RBA) is putting its faith in strong employment data as it resists the temptation to cut the official cash rate, which has remained unchanged since August 2016 at a record low 1.5 per cent.  

The latest data released by the Australian Bureau of Statistics (ABS) shows strong growth in the employment sector with an increase of 20,7000 persons. Full-time employment increased by 18,000 to 8,781,800 and part-time employment increased 2,700 to 4,008,2000 persons.

Governor of the reserve bank Philip Lowe believes employment and wage growth will continue to stimulate the economy, despite weaker inflation figures.

“The unemployment rate has been broadly steady at around 5 per cent over this time and is expected to remain around this level over the next year or so, before declining a little to 4.75 per cent in 2021. The strong employment growth over the past year or so has led to some pick-up in wages growth, which is a welcome development,” said Mr Lowe.

The RBA also believes the current skills shortage in some sectors of the economy will drive up wages.

Advertisement
Advertisement

“The Australian labour market remains strong. There has been a significant increase in employment, the vacancy rate remains high and there are reports of skills shortages in some areas. Despite these positive developments, there has been little further progress in reducing unemployment over the past six months,” said Mr Lowe.

The RBA’s data is reaffirmed by Robert Half salary guidelines, which has said that strong competition and skills shortages will increase salaries.

“With the skills shortage creating a more competitive marketplace, salaries for IT professionals are continuing along an upwards trajectory. In 2018, the annual wage growth in the Australian IT sector was reported to be 3.3 per cent,” Robert Half said.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Wage rises for Australians are in the works, RBA says
RBA
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.