Earn
We’re not getting pay rises, and it’s a drag on the economy
Low growth in income household is likely why our national GDP figures came in lower than expected, according to the Reserve Bank. This begs the question: is a projected surplus actually a sign of a healthy economy?
We’re not getting pay rises, and it’s a drag on the economy
Low growth in income household is likely why our national GDP figures came in lower than expected, according to the Reserve Bank. This begs the question: is a projected surplus actually a sign of a healthy economy?
In a speech this week, governor of the central bank Guy Debelle presented the RBA’s assessment of Australia’s current economic situation.
He made note of the tension between the differing states of GDP, labour and business conditions.
Stagnating wage growth has been a major contributor to slowing inflation, according to the RBA.
The RBA wants to see a rise in wages, while aiming for inflation to increase to a ‘sustainable’ target range of 2-3 per cent.
While Australia’s GDP has been weak, the labour market has been strong, with the unemployment rate declining faster than the RBA had previously forecast.
“The two lenses on economic growth provided by the labour market and the GDP data are in stark contrast,” Mr Debelle said.
“A third lens, in the form of business surveys, sits in between the two. Business conditions have declined from their high levels of the first half of 2018 but still remain consistent with around trend growth in the economy.”
Money in the bank, but so what?
The federal government has been touting a return to surplus next financial year, following the release of its federal budget last week.
However, Deloitte Access Economics’ Chris Richardson points out that a surplus budget is not necessarily a sign of a healthy economy.
“The economy is getting better but the budget is getting worse,” he said in the lead up to the budget’s release.
In fact, Australia has been in a per capita recession for the last two quarters for the first time since 2006, according to the estimations of AMP Capital chief economist Shane Oliver.
Salary
PM implored to introduce ‘AviationKeeper’ to prevent further job losses
The aviation industry is calling on the government for additional support, as one of Australia’s hardest-hit industries continues to struggle through the COVID-19 pandemic. ...Read more
Salary
Why employees could be forced to get a COVID-19 vaccination
Employees are being warned that they may need to sign up for a COVID-19 vaccine or face possible termination, a lawyer has explained. ...Read more
Salary
50,000 Aussies back at work: ABS
Australia has added 50,000 new jobs for the month of December, with the unemployment rate falling from 6.8 per cent in November to 6.6 per cent, official stats show. ...Read more
Salary
Economists predict a further drop in unemployment
Economists are predicting further falls in the unemployment rate largely led by Victoria as it emerged from an extended lockdown, new research has revealed. ...Read more
Salary
Casual workers could lose $1k under new reforms
The opposition has claimed that the Morrison government’s plan to amend penalty rates could cost casual employees up to $1,100. ...Read more
Salary
Job vacancies surpass pre-COVID levels
The Australian economy is continuing to show signs of improvement, with job vacancies skyrocketing over the last quarter, official figures have revealed. ...Read more
Salary
Unions take Qantas to High Court over JobKeeper ‘misuse’
Aussie unions are taking their fight with Australia’s largest airline to the High Court following claims Qantas misused the JobKeeper payment to subsidise overtime payments, essentially robbing wor...Read more
Salary
JobSeekers urged to ‘turn off Netflix’ and work in regional Australia
The acting Prime Minister has urged unemployed Australians who are currently on JobSeeker benefits to "turn off Netflix" and look for regional work, as farmers struggle to find temporary foreign worke...Read more
Salary
PM implored to introduce ‘AviationKeeper’ to prevent further job losses
The aviation industry is calling on the government for additional support, as one of Australia’s hardest-hit industries continues to struggle through the COVID-19 pandemic. ...Read more
Salary
Why employees could be forced to get a COVID-19 vaccination
Employees are being warned that they may need to sign up for a COVID-19 vaccine or face possible termination, a lawyer has explained. ...Read more
Salary
50,000 Aussies back at work: ABS
Australia has added 50,000 new jobs for the month of December, with the unemployment rate falling from 6.8 per cent in November to 6.6 per cent, official stats show. ...Read more
Salary
Economists predict a further drop in unemployment
Economists are predicting further falls in the unemployment rate largely led by Victoria as it emerged from an extended lockdown, new research has revealed. ...Read more
Salary
Casual workers could lose $1k under new reforms
The opposition has claimed that the Morrison government’s plan to amend penalty rates could cost casual employees up to $1,100. ...Read more
Salary
Job vacancies surpass pre-COVID levels
The Australian economy is continuing to show signs of improvement, with job vacancies skyrocketing over the last quarter, official figures have revealed. ...Read more
Salary
Unions take Qantas to High Court over JobKeeper ‘misuse’
Aussie unions are taking their fight with Australia’s largest airline to the High Court following claims Qantas misused the JobKeeper payment to subsidise overtime payments, essentially robbing wor...Read more
Salary
JobSeekers urged to ‘turn off Netflix’ and work in regional Australia
The acting Prime Minister has urged unemployed Australians who are currently on JobSeeker benefits to "turn off Netflix" and look for regional work, as farmers struggle to find temporary foreign worke...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
