The latest results on Aussie wages were, once more, a bit disappointing.
But the figures aren’t all bleak. And they do point to modest wage growth during the Coalition’s time at the helm.
With the federal election looming on Saturday, Labor leader Bill Shorten wants a ‘referendum on wages’.
However, Prime Minister Scott Morrison believes that with more Aussies finding jobs the follow through will be that companies increase pay, according to AAP.
The comments come after data was released on Thursday showing the unemployment rate slowly rising for the second month in a row, according to the Australian Bureau of Statistics (ABS). It’s now at 5.2%, rising 0.1 percentage points last month.
Morrison articulated his confidence in a speech at the National Press Club in Canberra.
The PM also noted that wages have increased since he was the Coalition’s treasurer, has the jobless rate strengthened.
‘The wage price index has risen from 1.9 to 2.3. So we’ve already seen the tightening in the labour market achieve that modest improvement,’ he said on Thursday.
‘It’s something the Reserve Bank governor has often referred to and he has forecast that that trend will continue into the future, and I also have that view.’
Morrison says that Labor’s plan to change some tax concession will ‘stilt’ progression, AAP reports.
A rise in the monthly participation rate offset the 28,400 increase in total employment for April, with the numbers also presenting a 21,200 rise in the amount of people not working.
Pressure to cut interest rates
This result has now put pressure on the RBA to cut interest rates, AAP reports.
Shadow Treasurer Chris Bowen stated that more effort in needed to grow wages and get more people into the workforce.
‘The main thing out of today’s job figures is it confirms significant under-utilisation in the job market,’ Mr Bowen told reporters in Sydney.
‘We have 1.8 million Australians either wanting more work or wanting work in total.
‘This comes on top of the wages figures which continue to be disappointing.’
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