New research from the Productivity Commission shows that 95 per cent of Australians are receiving pay rises in line with productivity growth, countering claims from unions and some politicians that workers are missing out.
The report, titled Productivity growth and wages - a forensic look, looks to set the record straight on wages amid a storm of claims from all sides of business and politics about whether Australians were getting their fair share.
New research from the Productivity Commission shows that 95 per cent of Australians are receiving pay rises in line with productivity growth. Picture: Getty Images A report by the Australian Council of Trade Unions and Canadian economist Jim Stanford, promoted by The Institute, suggested Australian workers were receiving an ever smaller share of income and claimed that corporate profits, not wages, was the source of higher inflation.and has also been seized upon by the Greens in their push for a super profits tax on business.
However, that push has sparked concerns among some experts and the Reserve Bank, who are warning the government that without new measurers to boost productivity higher wages will be unsustainable and potentially inflationary. According to the report, Australians would experience a fall in their share of labour income if the economy was showing signs long-term decoupling between wages and productivity.
It added that aggregate analysis of the economy, which looks at all industries together, masks this fact, as the agriculture and mining sectors account for a large share of economic output despite only accounting for just over four per cent of the workforce.
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