Australia’s economy may be getting larger, but the share of national income going to workers is getting smaller.
It’s actually nearing the lowest levels on record.
From the Commonwealth Bank, it shows the share of wages and company profits as a percentage of national income.
According to the ABS, total compensation of employees (COE) — including changes in wages, employment and hours worked — grew by 0.7% in the June quarter, leaving it up 4.8% over the year.
Per employee, the average increase was significantly smaller, lifting just 0.1% for the quarter and 1.6% over the year.
In contrast, company profits rose by 1.0% over the quarter, leaving the increase from a year earlier at 8.8%.
So while employee wages continue to increase, and are still the largest component, the share of the national income pie is getting smaller as company profits increase at a faster rate.
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