The terrifying chart showing how your wages will stall by December next year in 2008, while prices are rising and wages are going BACK
- Australian workers no better off than in 2008 according to new chart
- Australian Bureau of Statistics revealed that real wages are slowly falling
- Real wages are expected to bottom out in December, reaching the same level as 2008
According to a terrifying new chart, Australian workers will soon be no better off than they were in 2008 and real wages are falling rapidly.
The Australian Bureau of Statistics has revealed that real wages have slowly declined since they peaked after March 2020.
The numbers are expected to bottom in December 2023 and reach the same level as in 2008.
Real wages refer to an employee’s income adjusted for the current cost of living.
dr. Greg Jericho, policy director at the Center for Future Work, described the drop as “horrific” and “drastic.”
Australian workers will be no better off than they were in 2008 with rapidly declining real wages, according to a terrifying new chart (stock image)
The Australian Bureau of Statistics has revealed that real wages have declined slowly since their peak after March 2020
“Your wages may have increased by 20 percent, but prices have increased by 30 percent,” he said news.com.au.
Treasurer Jim Chalmers has revealed that his department expects inflation to rise to a 32-year high of 7.75 percent by the end of this year, as wages have risen just 3.75 percent this fiscal year.
He does not expect real wages to rise again before 2023-24, by which time inflation would have fallen to 2.75 percent.
dr. Jericho said lower income earners would be hardest hit by the real wage decline.
“It’s most pronounced for low-income people because what we’re seeing right now with inflation is that the prices of what we call non-discretionary items or essential items are rising faster than…discretionary luxuries,” he said. .
“So the prices of things you can’t avoid, like food, like energy, bills, rent are rising faster than the things you can decide not to buy, like a vacation.”
The Reserve Bank of Australia has given the strongest hint that it could start cutting interest rates in 2024, after the strongest rises in nearly three decades.
Borrowers managed to absorb another 0.5 percentage point increase in August, bringing the cash interest rate to a six-year high of 1.85 percent.
“So the prices of things you can’t avoid paying, like food, like energy, bills, rent, are rising faster than the things you can decide not to buy, like a vacation,” said Dr. Jericho
This has resulted in a borrower with an average mortgage of $600,000 having to pay an additional $169 in their monthly mortgage payments – the fourth consecutive rate hike for Australian homeowners since May.
But the Reserve Bank hinted in a new 71-page monetary policy statement released Friday that it could cut interest rates again as inflation slows.
“The predictions are based on a number of technical assumptions,” it said.
The path for the spot interest rate reflects expectations derived from surveys of professional economists and pricing in the financial markets, which assume that the spot interest rate will rise to about 3 percent by the end of 2022 and then fall slightly by the end of 2022. the end of 2024.
“Market pricing suggests that key interest rates will peak in the first half of 2023 at levels significantly higher than at the start of the pandemic.”