Wage growth in Australia remains fairly atrocious, even with record employment growth in 2017.
According to the ABS, hourly wage rates excluding bonuses grew by just 0.47% in the March quarter, leaving the change on a year earlier at a paltry 2.07%.
But heck, at least they still increased, right?
Well, sort of.
As seen in the chart below from Callam Pickering, APAC Economist at global jobs site Indeed, while nominal wages did increase, including inflation, real wage growth went backwards during the quarter.
“Real wages in Australia fell by 0.1% in the March quarter, to be 0.1% higher over the past year — the slowest annual pace since the September quarter 2015,” he said in a Tweet following the wage report.
“It’s now been more than five years since we last saw respectively real wage growth.”
With real wage growth barely keeping up with inflation, it goes someway to explaining why household spending is currently growing well below the levels seen before the global financial crisis.
You can follow Callam on Twitter here.