Are Growing Wages Still Playing Catch-Up With Inflation?


Australian wages are growing by closer to 4% than 3%. That’s how fast they should grow when inflation is less than 3%, not 7%. Let us celebrate the strongest wage growth since 2012. Too often the narrative around wages seeks to undercut the positives, saying wages growth will hurt businesses or that they will force the Reserve Bank to raise interest rates further. Wages growth is good. People are the economy and people deserve to be rewarded. The reality is that, despite these good wage figures, workers’ ability to buy things with their money is going backwards. What are your thoughts LiveTribers? Are growing wages still playing catch-up with inflation?

Posted by on 23 Jun 2023

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  • [0] [0]
    yelsha42

    It's not keeping up as expenses outweigh income

    Posted by yelsha42 on 13 Dec 2023
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  • [0] [0]
    kendallx3

    Still playing catch up!

    Posted by kendallx3 on 13 Dec 2023
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  • [0] [0]
    Minh-Hai Henry

    wage growth is increase at such a slow rate vs the growth of inflation. The margin to have spending after cost of living is seemingly getting smaller and smaller

    Posted by Minh-Hai Henry on 27 Jul 2023
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  • [0] [0]
    Captain Blue Bear

    Wages always lag inflation. The idea that wages growth drives inflation is a story spread to suppress wages. Beyond that, this seems terribly confused. My thoughts are that you really don't have grasp on how this works.

    Posted by Captain Blue Bear on 23 Jul 2023
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  • [0] [0]
    tony

    For some people, wage growth is higher than inflation, but most are worse off. I certainly;y am

    Posted by tony on 17 Jul 2023
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  • [0] [0]
    Natalie

    Wages are so far behind inflation that it will take ages (if ever to catch up). We should also remember that not all wages are going up. If you are not paid award wages then your wages are not going up and in many industries the only way to get a pay rise is to change jobs.

    Posted by Natalie on 10 Jul 2023
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  • [0] [0]
    Guntis

    Wages are only part of the losses. Inflation affects all your savings.

    Posted by Guntis on 06 Jul 2023
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  • [0] [0]
    Loner wolf

    We are losing 'value' of the present increase. As costs rise to meet the inflationary challenge. But I agree that people make the economy happen and need rewarding for their equity and work. As money is just another form of energy that can be balanced with equality for all as a desired result.

    Posted by Loner wolf on 01 Jul 2023
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  • [0] [0]
    tassiegirl

    There is a huge difference between the wealthy and those on the lowest income (eg people on the minimum wage and people on social security). I see people on huge wages complaining about the high cost of living. Bills (gas electricity etc) are all increasing rapidly. The cost of food is sky rocketing. Petrol is high. My wages (from self employment) have remained exactly the same, despite the increases. I am now working 3 different jobs to try to make ends meet.

    Posted by tassiegirl on 27 Jun 2023
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  • [1] [0]
    Turbotom

    Inflation is higher than wages and playing catch up is a dangerous game indeed, if only we had a competent government who delivers what they promised and reduced cost of living

    Posted by Turbotom on 26 Jun 2023
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  • [0] [0]
    SagoLeo

    Most people haven’t had a proper pay increase in over 20 years so yes there is a lot of catching up to do.

    Posted by SagoLeo on 26 Jun 2023
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  • [0] [0]
    mid

    cost of living pressures are impacting despite wage growth

    Posted by mid on 26 Jun 2023
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  • [0] [0]
    steven_i

    Despite the good wage growth figures, workers' ability to buy things with their money is declining. While wages are growing, the rising cost of living and other factors are outpacing this growth, resulting in a decrease in workers' purchasing power.

    Posted by steven_i on 26 Jun 2023
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  • [0] [0]
    Michelle

    with the cost of food, interests rates, electricity etc, our wages should go up as well, people are doing it so tough

    Posted by Michelle on 26 Jun 2023
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  • [0] [0]
    XIAOYANG

    Cutting inflation should always be the top priority. So even if most borrowers are struggling the interest rate should be lifted. The shouting for lower interest rate is terribly misleading. Because when interest rate is lower, the money saved from your mortgage repayment could be easily consumed by other daily expenses due to even higher inflation.

    Posted by XIAOYANG on 26 Jun 2023
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  • [0] [1]
    Frank

    Wage growth needs to be at 7% to equal inflation and cost of living increases

    Posted by Frank on 26 Jun 2023
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  • [0] [0]
    Joshy79

    Inflation will always be king, wages will always be second.

    Posted by Joshy79 on 26 Jun 2023
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  • [0] [0]
    Daniel

    No, the growing wages can not catch up with inflation now

    Posted by Daniel on 26 Jun 2023
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  • [0] [0]
    Jay

    it's a good thing that growing wages catch up with inflation. People have confidence on consumption would stimulate economic growth and bring a positive impact overall.

    Posted by Jay on 26 Jun 2023
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  • [0] [0]
    CILLY0

    While ever we keep having wage increases it will force the RBA to increase interest rates to try to bring the economy back into line with its target as set by the government of the day. It will keep spiralling out of control until inflation is brought down.

    Posted by CILLY0 on 26 Jun 2023
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  • [0] [0]
    william

    pensions and other benifits are the ones that loose out to inflation

    Posted by william on 26 Jun 2023
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  • [0] [0]
    Peter

    Wages will always be playing catch up only the select few are paid rides that exceed inflation rates catch up is near impossible as business will increase prices to recoup extra party aearded

    Posted by Peter on 26 Jun 2023
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  • [1] [0]
    BKM547

    Pensions will never keep up with inflation.

    Posted by BKM547 on 26 Jun 2023
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  • [0] [0]
    Guntis

    Inflation is far stronger.

    Posted by Guntis on 26 Jun 2023
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  • [0] [0]
    bmlglp

    There is too much catch up for the wage to increase to match the inflation. It appears to me that it is "The recession we have to have... again".

    Posted by bmlglp on 26 Jun 2023
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  • [0] [0]
    Dominic

    Most likely maybe possibly

    Posted by Dominic on 26 Jun 2023
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  • [0] [0]
    wrestling collector

    I only have a part time job & semi-retired,however I have received one 2.5 % pay rise in over 2 years.If inflation is running at around 7% per Annum,it is pretty obvious I am going backwards.

    Posted by wrestling collector on 26 Jun 2023
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  • [0] [0]
    Sue

    Yes, wage growth is still way behind inflation. I fell for people who are struggling. I was brought up to be very frugal, to plan ahead and, in particular, to consider the worst that could happen. That has helped me accumulate modest assets and I'm not worried about my financial security. My grandparents and parents taught me how to be frugal while still enjoying a high quality of life, but, when it comes to investments, I'm self taught, following tried and true principles such as regular saving, spreading risk and so on [a slow, but steady and sure way to build security].

    Posted by Sue on 26 Jun 2023
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  • [0] [0]
    rbarltrop

    Dont remember when I last got a pay rise and even if I did, it'd be in one hand out the other. Between utilities and groceries the increases are astronomical. I remember when a grocery item would increase by 10c or 20c, now I see items go up by $1 and $2 - outrageous! Electricity is increasing by 25%, thats unheard of. Crazy!!!

    Posted by rbarltrop on 26 Jun 2023
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  • [0] [0]
    Tara Rata

    The wages will never catch up to inflation for some people. Until inflation stops, the wages will never equal a fair partnership.

    Posted by Tara Rata on 26 Jun 2023
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  • [0] [0]
    Jigsaw

    Depends on what industry your working in.

    Posted by Jigsaw on 26 Jun 2023
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  • [0] [0]
    Sally

    It is playing catch up with inflation

    Posted by Sally on 26 Jun 2023
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  • [0] [0]
    tutti_cutie

    Always. Wage increases are never on par with inflation, doesn’t matter what the economy is like.

    Posted by tutti_cutie on 26 Jun 2023
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  • [0] [0]
    merryl

    When inflation is high, wages will always be playing catch-up with inflation.

    Posted by merryl on 26 Jun 2023
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  • [0] [0]
    sulter

    I doubt if my defined benefits super will even rise by 4% in October. I have been trying to save where I can, but even Aldi prices are outrageous, for example, a tin of baked beans used to be 65 cents and now sells for $1.49.The price has more than doubled! Pet food seems to rise every time I buy it too. I'm soon to come off my i/o mortgage payments and who knows how much extra a week I will need to find then? We may even be forced to move.

    Posted by sulter on 26 Jun 2023
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  • [0] [0]
    Megan

    funny, i dont know anyone with a wage rise.....except daniel andrews and his political buddies... so many people are doing it tough, and basically working for nothing.

    Posted by Megan on 26 Jun 2023
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  • [0] [0]
    nk_amara

    My husband's pay went up 2.5% this year, mine 3%. Even if they both went up by the level of inflation, it would be a drop in the ocean compared to the amount our mortgage has risen. So I can guarantee our wage growth, such as it is, does not contribute to inflation. In fact, for the last six months, we've been digging into our savings to pay the mortgage increases. While we can afford to do this, ultimately it is not sustainable. The RBA doesn't want the middle class to have savings anymore.

    Posted by nk_amara on 26 Jun 2023
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  • [1] [0]
    Barry

    When the country is $135 billion in debt with high inflation, cost of living and unions advocating wage rises, this country is on the way to socialism

    Posted by Barry on 24 Jun 2023
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  • [0] [0]
    Sally

    Cost of living is getting so high interest rate also is putting people in bad situations

    Posted by Sally on 24 Jun 2023
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  • [0] [0]
    Joshua

    I believe Australia is getting so expensive to live in , I am working a 13 day fortnight, and I’m trying to make extra cash online !

    Posted by Joshua on 24 Jun 2023
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  • [0] [0]
    McCOOL

    Growing wages are still playing catchup with inflation. Even a 3% wage rise doesn't offset a 5-7% inflation rate as all goods increase with pay rises and the economy.

    Posted by McCOOL on 23 Jun 2023
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  • [1] [0]
    Paula

    Pay rises are all well and good if the increased pay is offset by increased productivity but in Australia's case it isn't with productivity at it lowest in history. These pay rises will only feed inflation and not help anyone. Not everyone gets a pay rise with people like myself who are self funded watch as our money shrinks. At least we are getting some interest now whereas previously we weren't getting anything.

    Posted by Paula on 23 Jun 2023
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