Wages growth jumps for new hires, but research shows under-35s are bearing the brunt of a falling share of income going to workers.
"Firm entry rates have declined from 13 per cent in the mid-2000s to 11 per cent in the mid-2010s, while the employment share of young firms has declined from 11 per cent to 8 per cent over the same period – a pattern that is broad-based across industries," the e61 report observed.
This has resulted in young Australians bearing the brunt of a decline in the share of national income going to wages. Business groups have disputed the existence of a widespread trend towards profits growing ahead of wages. "The fall in the labour share of market sector income does not therefore support the proposition that businesses in general have access to a greater share of industry income from which they can pay higher wages."
Mr Burn said those claims are based on labour productivity and thus do not account for the contribution of business investments in new machinery and technology that have generated much of the recent productivity growth and for which, he argued, business deserves to enjoy the returns.
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