Australia Wages at a Record Low

[Guest The Pom Queen]

Australian wages are failing to keep pace with inflation after official figures revealed a decline in real terms for the second quarter in a row.

 

 

Wages growth remains at record lows with the quarterly wage price index from the Australian Bureau of Statistics (ABS) rising just 0.6 per cent in the June quarter in seasonally adjusted terms.

 

 

On an annualised basis, wages grew at 2.6 per cent – the same as the previous quarter – which is well below the inflation rate of 3 per cent.

 

 

The figures follow last week's unexpected spike in the unemployment rate to 6.4 per cent in July, and mean most Australians effectively took a pay cut during the three months to the end of June.

 

 

RBC Capital Markets economist Su-Lin Ong says there are not enough jobs being created to drive wages higher.

 

 

"Real wages are going backwards. We know purchasing power accordingly is pretty limited here," she said.

 

 

"I think for us that's one of the key headwinds for consumers going forward. We expect consumption, household consumption, to remain fairly modest."

 

 

Private sector wages have suffered the most, easing from 2.6 per cent growth to 2.4 per cent.

 

 

Public sector wages growth, meanwhile, dropped to 2.8 per cent from 2.9 per cent, still below the pace of inflation.

[flag of convenience]

Wages and living standards are in gradual decline due to the declining mining sector in the main. With 20% under 24 year olds unemployed, and the governments only response is the desire to cut out unemployment benefit for six months. Over population due to excessive immigration and 457's has been clearly shown to be of impact with the focus on the number of jobs expected to be created over the next year. Many already here will miss out.

 

All building up to quite a potential mess in the making.

[Guest Guest66881]

Sounds like you want patting on the back mate:skeptical:

[VERYSTORMY]

This is just my observation of what I am seeing:

Increasing amounts of ads on tv for pay day loans and debt services

Our library is considering limitations on computers due to the high number of unemployed requesting access

Less and less jobs on line and in the press

Jobs that are out there are paying less and less - in some cases I am seeing real cuts in pay

 

It is very much feeling like dejavou of UK 2008.

[flag of convenience]

Sounds like you want patting on the back mate:skeptical:

 

No pat on the back required, as hardly needed a crystal ball the see the obvious building up within a sea of ignorance or at best those being so self righteous not to say self absorbed into how wonderfully well they as individuals were doing and that the economic wonderment would last a thousand years and those with a different view were nothing but negative and stirrers and had no place in the grand scheme of things.

[flag of convenience]

This is just my observation of what I am seeing:

Increasing amounts of ads on tv for pay day loans and debt services

Our library is considering limitations on computers due to the high number of unemployed requesting access

Less and less jobs on line and in the press

Jobs that are out there are paying less and less - in some cases I am seeing real cuts in pay

 

It is very much feeling like dejavou of UK 2008.

 

Except Australia is pretty much alone in its part of the world.

[Guest Guest66881]

No pat on the back required, as hardly needed a crystal ball the see the obvious building up within a sea of ignorance or at best those being so self righteous not to say self absorbed into how wonderfully well they as individuals were doing and that the economic wonderment would last a thousand years and those with a different view were nothing but negative and stirrers and had no place in the grand scheme of things.

 

 

Everyone as seen it coming mate, just that some don't keep banging on about it, what can you do other than moan about it?

Maybe you should have jumped ship when you first realised the boat was going down, happens all over the world and not everywhere as a mining boom to rely on, britians just clawed out of one America keeps falling back into one, the world is unbalanced and on the edge of war, what do you expect?

[flag of convenience]

This is just my observation of what I am seeing:

Increasing amounts of ads on tv for pay day loans and debt services

Our library is considering limitations on computers due to the high number of unemployed requesting access

Less and less jobs on line and in the press

Jobs that are out there are paying less and less - in some cases I am seeing real cuts in pay

 

It is very much feeling like dejavou of UK 2008.

 

Oh, and more sub prime loans are being called in. Those that borrowed usually enticed to by smooth talking loan sharks, who for all intents and purposes shouldn't have committed to a mortgage and due to job loss or some other impact can no longer repay the loan. Little mercy for the less advantaged folk I'm afraid.

[flag of convenience]

Everyone as seen it coming mate, just that some don't keep banging on about it, what can you do other than moan about it?

Maybe you should have jumped ship when you first realised the boat was going down, happens all over the world and not everywhere as a mining boom to rely on, britians just clawed out of one America keeps falling back into one, the world is unbalanced and on the edge of war, what do you expect?

 

Not unlike you keeping on banging on about how good it all is and certainly not a word in the negative. Gave a one sided honky dory side to what was actually happening on your ground and always a naval gazing view. I had no need to jump ship as am sorted. You tune does seem to be changing though. Glad reality is seeping through.

[starlight7]

When you look at countries like China and most of Asia you think our wages are very, very high- and not competitive. Why hire an Aussie when you can cut costs and get someone from overseas? Things will get much much worse unfortunately. A step in the right direction might be to get rid of 457 visas and give the jobs to residents.

[Guest Andy]

When you look at countries like China and most of Asia you think our wages are very, very high- and not competitive. Why hire an Aussie when you can cut costs and get someone from overseas? Things will get much much worse unfortunately. A step in the right direction might be to get rid of 457 visas and give the jobs to residents.

This is exactly the issue that British people have been facing over the last few years and then they are accused of being lazy when an immigrant chooses to do their job for minimum wage a wage that is not a living wage to a Brit. Immigration is a massive factor for causing these problems and although Britain is doing well at the moment we will have massive problems in years to come. Australia should have learnt from us!

[Paul1Perth]

When you look at countries like China and most of Asia you think our wages are very, very high- and not competitive. Why hire an Aussie when you can cut costs and get someone from overseas? Things will get much much worse unfortunately. A step in the right direction might be to get rid of 457 visas and give the jobs to residents.

 

Are you really Gina Reinhart posting as Starlight7?:wink: She thought that was a good idea too.

I think the major companies in particular have used the governments negative spin on the economy and the constant news about the mining boom being over to reduce staff numbers and increase workload for the ones remaining. All in the name of efficiency and cost saving.

 

It's business reporting season isn't it, record profits already being announced by a few places already, banks and mining companies amongst them. No surprise there then, makes you wonder why they harp on about how hard done by they are and how they need to get rid of staff every chance they get.

 

I have a friend contracting to a big oil and gas company. He started with them on a short term contract about 5 years ago and is still there. He's on good money, no complaints there, but recently he is being loaded up with more and more work. The company have laid off a lot of staff but there is still the same amount of work to do. A few of the guys I hang around with go swimming one night a week. Get to the pool around half 6 and swim for an hour or so. This friend has been missing for a few weeks and I asked him why. He explained about the workload he's expected to take on and he can't get to the pool by half 6. He starts early too. Says he can't say no as he's a contractor and would be out the door. No unions going to fight his case.

 

I guess he's getting the rewards with the extra salary and the family have been on some good holidays the last few years but it's a sign that the employers are making the most of all the negativity. Suppose it will help with the management bonuses at the end of the year though and the shareholders will be happy.

[Paul1Perth]

This is exactly the issue that British people have been facing over the last few years and then they are accused of being lazy when an immigrant chooses to do their job for minimum wage a wage that is not a living wage to a Brit. Immigration is a massive factor for causing these problems and although Britain is doing well at the moment we will have massive problems in years to come. Australia should have learnt from us!

 

Britains "doing well at the moment" equates to about the same unemployment levels we have here. Just that after the bad run that Britain has had any improvement and the government can turn it into a "Britains doing well" story. Just depends on how bad it's been and what you call an improvement.

 

I'll believe Britains doing well when I hear about the end of zero hour contracts, guaranteed work, proper jobs with holidays, wages and pensions. Things that were pretty standard before the GFC.

 

News just out in the UK.

Here are the key points on today’s unemployment data, from the ONS:

 

 

• For April to June 2014, there were 30.60 million people in work, 167,000 more than for January to March 2014 and 820,000 more than a year earlier.

• For April to June 2014, there were 2.08 million unemployed people, 132,000 fewer than for January to March 2014 and 437,000 fewer than a year earlier.

• For April to June 2014, there were 8.86 million economically inactive people (those out of work but not seeking or available to work) aged from 16 to 64. This was 15,000 more than for January to March 2014 but 130,000 fewer than a year earlier.

• For April to June 2014, pay including bonuses for employees in Great Britain was 0.2% lower than a year earlier, but pay excluding bonuses was 0.6% higher.

 

 

 

 

If that's "doing well" then I wouldn't have wanted to be there when it was doing badly.

[Echidna66]

Just let in thousands of economic refugees that will solve all of these problems..

[ArthurPendragon]

Just let in thousands of economic refugees that will solve all of these problems..

No. Lets put a blockade on migration, jack up the wages and reduce our population growth.

 

But then no one will buy our goods because they are costly, and because of low population ( thanks again to those who are against migration), our market won't be able to support our industries.

[Guest Andy]

Britains "doing well at the moment" equates to about the same unemployment levels we have here. Just that after the bad run that Britain has had any improvement and the government can turn it into a "Britains doing well" story. Just depends on how bad it's been and what you call an improvement.

 

I'll believe Britains doing well when I hear about the end of zero hour contracts, guaranteed work, proper jobs with holidays, wages and pensions. Things that were pretty standard before the GFC.

 

News just out in the UK.

Here are the key points on today’s unemployment data, from the ONS:

 

 

• For April to June 2014, there were 30.60 million people in work, 167,000 more than for January to March 2014 and 820,000 more than a year earlier.

• For April to June 2014, there were 2.08 million unemployed people, 132,000 fewer than for January to March 2014 and 437,000 fewer than a year earlier.

• For April to June 2014, there were 8.86 million economically inactive people (those out of work but not seeking or available to work) aged from 16 to 64. This was 15,000 more than for January to March 2014 but 130,000 fewer than a year earlier.

• For April to June 2014, pay including bonuses for employees in Great Britain was 0.2% lower than a year earlier, but pay excluding bonuses was 0.6% higher.

 

 

 

 

If that's "doing well" then I wouldn't have wanted to be there when it was doing badly.

 

I can only say it as i find it now, and i am saying that my business is doing better now than it has over the last few years and people appear to be willing to spend more and confidence seems better.

[Paul1Perth]

I can only say it as i find it now, and i am saying that my business is doing better now than it has over the last few years and people appear to be willing to spend more and confidence seems better.

 

That's good Andy. I've heard the South has not felt the downturn like the North. When we were over on holiday we had the chance to stay with my Sister in Melton Mowbray. We've never been to that part of the country before and it had a totally different feeling than where we used to live around Stockport. Houses were better, few more nice expensive looking cars, people generally dressed better, went out for lunch and dinner more, just a totally more upbeat feel to the place.

 

Let's face it things were really bad and had to improve. I find it strange that Australia's unemployment is still lower than the UK and according to the media and politicians we are supposed to be heading for some kind of crisis whilst in the UK the same figures are supposed to indicate nothing but good news.

[Xenon4017]

...an immigrant chooses to do their job for minimum wage a wage that is not a living wage to a Brit.

 

What's the difference between an immigrant and a Brit? Either the wage supports your life, or it doesn't. Or are Brits entitled to more? If so, why?

[Xenon4017]

I find it strange that Australia's unemployment is still lower than the UK and according to the media and politicians we are supposed to be heading for some kind of crisis whilst in the UK the same figures are supposed to indicate nothing but good news.

 

That's the beauty of statistics. The same data can support any hypothesis you want.

 

Just look at the title of the thread, "Wages at Record Lows". Yet no mention of how we're comparing that to historical data. I'm pretty sure that we're better off now than we were 100 years ago, and the data exists for GDP for that period.

 

This is why Hockey is in so much trouble. What he said was factually correct, but rather obvious and boring. So to get a headline story, you have to half-quote him. "Poor people don't drive cars [as much as rich people]". Easy to twist into "If you have a car, you're not poor".

[Paul1Perth]

What's the difference between an immigrant and a Brit? Either the wage supports your life, or it doesn't. Or are Brits entitled to more? If so, why?

 

From what I've seen and experienced your average Brit has a family and a mortgage and probably a car to run. He needs a certain amount to just maintain the lifestyle and keep his head above water.

 

You average immigrant can leave his family in whatever country he's left, share a house with a few others from the same country, get cash in hand jobs so they don't pay tax, live very frugally and maybe send a bit back to the family, wherever they come from. Used to be a lot of Irish do that, used to come over for the summer and work on building sites for cashies. I think it was called working on the lump? Now, with the rest of the EU to contend with, even the Irish are being undercut on price.

 

Same sort of thing is happening here too, like the workers they found recently up in Carabooda on some property. Difference is they are usually Asians running the racket with other Asians being exploited. They've only just started touching the tip of an iceberg. If they have the balls to carry on investigating they are going to discover thousands.

[Paul1Perth]

That's the beauty of statistics. The same data can support any hypothesis you want.

 

Just look at the title of the thread, "Wages at Record Lows". Yet no mention of how we're comparing that to historical data. I'm pretty sure that we're better off now than we were 100 years ago, and the data exists for GDP for that period.

 

This is why Hockey is in so much trouble. What he said was factually correct, but rather obvious and boring. So to get a headline story, you have to half-quote him. "Poor people don't drive cars [as much as rich people]". Easy to twist into "If you have a car, you're not poor".

 

I used to think Joe Hockey would be OK. Now he's taken over WA's Troy Buswell as the master of putting his foot in it. Wonder if they'll be able to get him off on the excuse of having a mental breakdown?

[Xenon4017]

From what I've seen and experienced your average Brit has a family and a mortgage and probably a car to run. He needs a certain amount to just maintain the lifestyle and keep his head above water.

 

You average immigrant can leave his family in whatever country he's left, share a house with a few others from the same country, get cash in hand jobs so they don't pay tax, live very frugally and maybe send a bit back to the family.

 

Your "average" immigrant. So, those that are working as porters in hospitals aren't paying tax?

 

Yet he manages to support his family, who probably live in a house with a mortgae and drive a car etc etc. But you have managed to find the key difference. They can, and will, live very frugally. What's wrong with that?

[Paul1Perth]

Your "average" immigrant. So, those that are working as porters in hospitals aren't paying tax?

 

Yet he manages to support his family, who probably live in a house with a mortgae and drive a car etc etc. But you have managed to find the key difference. They can, and will, live very frugally. What's wrong with that?

 

The guy working as a porter would hopefully be paying tax and maybe living here with his family? A hospital porter would be on a decent wage compared to the guys I am talking about, he's in a proper job. I would call him your average Aussie, no matter where he's from.

 

If you're looking for people working cash in hand they won't be working as hospital porters, or anywhere they have to have a tax file number.

[VERYSTORMY]

To be honest, I don't think it is immigration per se that is the problem. It is the lack of jobs and rising unemployment. I think that at least partly stems from Australia developing a relationship that has been over reliant on china. Now that china is sneezing, it is going to be difficult for the economy not to get a pretty nasty cold. The hard part will be if it catches pneumonia.

 

The data isn't encouraging. For anyone that missed it, the data out yesterday was pretty shocking

http://www.mining.com/iron-ore-price-drops-near-2-month-low-after-china-data-shock-44912/

 

If this turns into a serious slow down then Oz is in brown stuff up to the neck. To be honest, I am pessimistic on china. There have been a huge amount of companies that had contracted manufacturing to china, bring it back to the home countries due to quality issues and in some areas lack of competitiveness - making things there has become increasing expensive. At the same time, china has built it's entire system on debt.

[Guest Andy]

What's the difference between an immigrant and a Brit? Either the wage supports your life, or it doesn't. Or are Brits entitled to more? If so, why?

Immigration has stifled wage growth over be last few years especially in the low pay sector or minimum wage area due to an abundance of people willing to do this work, if you have 10 immigrants holed up in one two bed house (and I have seen this) then they can afford to work for a lot less than a young Brit who may have a young family, mortgage, car etc. in my opinion it is unfair on the British and yes, perhaps they should be paid more.