What’s happening to wages in 2017?
As 2017 is well on its way, many of you might be thinking about the things you’ll need to pay for this year. Whether it’s an increase in rent, paying off your mortgage, buying a car, or paying your kids sports registration fees, a decent pay increase would be handy in helping make ends meet.
If you feel like it’s been a while since pay increases, you’re not alone. In September 2016, the Australian Bureau of Statistics reports that wait times for pay increases had climbed from 12 months to 14 months.
Not only are we waiting longer for pay increases, but also when they finally arrive, they are less than what we’re used to. In 2016, the average wage increase shrunk from 3.6% to 2.3%. Wage growth in the economy overall is now at 1.9%. That’s the lowest since the ABS started recording this statistic in the 1990s.
A recent piece in the Sydney Morning Herald outlined the factors that impact wage growth. It doesn’t paint a glowing picture for prospects in 2017.
I wish to be excluded from this terrible economic narrative.
Of course, this isn’t the whole story.
Last week, the ABS published figures showing that workers on collective agreements (normally negotiated by workers in conjunction with their union) are 25% better off than workers on the Award or minimum wage. Also, in January, Roy Morgan Research released their report that showed that unionised workers are $9000 per year better off than workers not in union.
So if you’re thinking about how you might get that pay increase in 2017, this is probably the only link you need to click.