If you were counting on a decent pay rise to afford that home reno or week in Thailand, we have some potentially distressing news.
The Reserve Bank of Australia – otherwise known as the all-knowing power of all things finance in this country – have predicted that wage levels will likely stay pretty stagnant for the next two years.
In other words, most of us shouldn’t expect a decent boost to our salaries – as in above around one or two per cent – until 2020.
Listen: Entrepreneur Janine Allis tells us the right way to go about getting a pay rise. (Post continues.)
That’s according to economics writer Jason Murphy’s analysis of a recent speech by the RBA’s assistant governor Luci Ellis.
Ellis hinted at the fact that Australia’s labour market has “spare capacity.” Basically, Australia’s unemployment rate is 5.5 per cent and there’s nothing set to push bigger wage increases until unemployment falls below five percent, which may or may not happen in 2020.
Murphy writes that our wage growth has been dropping steadily, so people’s pay increases have been getting smaller and smaller and 2020 could even be an optimistic prediction at when this might end.
Watch: How men and women negotiate. (Post continues.)
Thankfully for some, wage increases of above two per cent look like they’re still on the cards. It’s a good time to work in education or be a doctor, nurse or otherwise be employed in the healthcare industry.
As for the rest of us, well let’s remember 2020 is actually only two years away (which is maybe an even scarier thought).