FINANCE LIFE

Australian Wage Growth Statistics Show We Are Even More F*cked Than We Thought in 2021

red and blue light streaks

For many Australians, the only thing worse than the global pandemic and flurry of lockdowns in recent months has been the economic inequality. Although office workers who are financially secure have seen great returns on the stock market and their sector has been able to adapt to WFH’s demands, those who must physically go to work have seen their incomes drop.

Many people have lost their livelihoods and are doing it tough thanks to The Spicy Cough. The Spicy Cough continues to grow in strength and interest rates are still historically low. While job insecurity remains high, the stock market is volatile and hot.

red and blue light streaks

No wonder people are speculating on and to try and make some scratch… And now it seems our woes have got even worse, with recent wage growth data revealing what we’ve all known instinctively for a while – that not only are wages not growing, they’re actually shrinking. Real wages, which is the difference between inflation and wage growth, have fallen 2.1%. This is the biggest drop in 20 years.

Australians comment on this situation:

“Even though my profession is the most highly paid, other people’s homes are making more than mine. They don’t even have to pay taxes. I have no idea why the public isn’t more informed/angry.

“Like honestly why did I bother to get a decent job when home speculators… get to make out like bandits.” (or hundreds) of thousands of dollars, only to be outpaced [by] the capital appreciation of [a] shitty public fibro shack located in any capital city. The world has really gone crazy …”

One commenter was even more brutal, simply saying: “Lol. We are so fucked!”

“After a decade of trying the same shit and not getting the results they were after along comes 2020 and the RBA doubles down in an absolutely tremendous way while still expecting that somehow the thing that hasn’t been working will suddenly start working. It’s a tragedy!”

men's black jacket

That wages have actually fallen in real terms despite the fact the labour market is currently so tight is truly a worry… No doubt current wage growth (or lack of it, more accurate) has been deeply affected by the pandemic – but wages have long been out of step with not only inflation but productivity for years now. Sorry to bring you bad news.

In short? It’s better to start saving, but perhaps hoping it will be modern Fort Knox.