Australia's economy is booming, but workers are missing out as their share of income nears the lowest level on record

Chris Ware/Keystone Features/Getty Images

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.

Here, look.


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.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.