News // Economics
May 2023
Workplace Law Reform Must Limit Cancer of ‘Gig Work’ in Care Economy: Research
New research reveals the growth of ‘gig’ employment in the NDIS and care sector is undermining minimum employment conditions for tens of thousands of workers, with thousands of workers likely earning below-award wages, missing out on superannuation and experiencing inferior WHS protections and gender pay equality outcomes.
Real wages falls and interest rates rises signal tough times for households and the economy
You can’t sustain household spending while real wages continue to fall, and households are starting to let everyone know
Wages are growing solidly but real wages continue to plummet
Wages are growing the best they have for 11 years, but real wages are now back at the level they were 14 years ago
Affordability of a Liveable Jobseeker Payment is a Non-Issue
Commonwealth on Track for Diminutive Deficit or Surplus in 2022-2023 In the lead-up to its 2023-24 budget, the Labor Government finds itself in an awkward position, accepting that the Jobseeker payment is “seriously inadequate” and an impediment to regaining work, yet professing that it lacks the financial capacity to afford a meaningful increase anytime soon.
April 2023
7% Minimum Wage Rise Would Tackle Inflation, not Feed it: Research
A 7% National Minimum Wage rise for low paid workers would help tackle the rising cost of living for those on award wages while having a virtually undetectable impact on economy-wide prices, new research from leading economists at the Centre for Future Work has found. The data comes as the Fair Work Commission deliberates about
March 2023
Women Earn $1m less than men & $136,000 Less in Super over Working Life
New research released on International Women’s Day reveals Australian women earn $1.01m less over their working lives than men, based on median income data. Women earn $136,000 less in superannuation over their working lives than men, based on median income data. Women earning the median wage will accumulate approximately $393,676 in super, $151,000 below what
Australian Inflation Reflects a Historic Redistribution from Workers to Bosses
The upsurge of inflation since the COVID-19 lockdowns has not had equal impacts on all Australians. Workers and low-income people have experienced the worst losses: both because their incomes, in most cases, have not kept up with prices, and because they are more dependent on essential goods and services (like shelter, food, and energy) than higher-income households.
February 2023
Profit-Price Spiral: Excess Profits Fuelling Inflation & Interest Rates, not Wages
New empirical research reveals the main driver for inflation in Australia is excess corporate profits, not wages, and that inflation would have stayed within the RBA target band if corporates had not squeezed consumers through the pandemic via excess price hikes.
Carmichael Centre Announces Appointment of Prof. David Peetz as Laurie Carmichael Distinguished Research Fellow
The Carmichael Centre at the Australia Institute’s Centre for Future Work is proud to announce the appointment of Prof. David Peetz, one of Australia’s most outstanding labour policy experts, as the new Laurie Carmichael Distinguished Research Fellow. Prof. Emeritus Peetz has recently retired from a long career at Griffith University, where he served as Professor
December 2022
Inequality and poverty is a policy choice – and the Stage 3 tax cuts will make both worse
When you reduce the revenue available to fund government services, you inevitably increase inequality
The economy is slowing as the Reserve Bank hits the brake
The build up of savings during the pandemic is over – now we need strong income growth to keep the economy going as the Reserve Bank tries to slow it.
The Reserve Bank needs to watch that it doesn’t push the economy off a cliff
For most of this year, the warnings and news about inflation have been one of hope for the best but experience the worst. Predictions of future inflation growth have continually been revised upwards and with it has been the suggestion that interest rates need to keep rising.
November 2022
Deal on IR Reforms Sets Stage for Faster Wage Growth
Industrial Relations Reform Sets Stage for Significant Acceleration of Wage Growth.
Rough times ahead for Australia’s economy as oil, gas and coal companies celebrate
The latest economic outlook from the OECD highlights the precarious path for Australia over the next few years.
Australians Working 6 Weeks Unpaid Overtime, Costing Economy Over $92 Billion: Go Home on Time Day Report
New research shows Australian workers are on average working 6 weeks unpaid overtime per year, costing over $92 billion dollars in unpaid wages across the economy. The average worker is losing over $8,000 per year or $315 per fortnight due to what researchers have branded “time theft”. 23 November 2022 marks Go Home on Time
Wages growth improves but real wages fall at a record rate
The latest wages price index figures show that for the first time since 2013 wages grew by more than 3% in the past year.
Restoring Collective Bargaining Coverage Would Boost Wage Growth: Research Report
Proposed reforms to Australia’s industrial relations laws are likely to support higher coverage for collective bargaining in the national labour market, and provide a boost to stagnant wage growth according to new research from the Centre for Future Work. The report reviews historical data on the erosion of collective bargaining in Australia, and its close
Gas companies are profiting off of human misery – we need a windfall profits tax
Russia’s illegal invasion of Ukraine caused a massive surge in gas and LNG prices that have enabled gas companies around the world, including Australia to make record-level profits.
Multi-Employer Bargaining Necessary for Fixing Wages Crisis
Proposed reforms to Commonwealth industrial relations laws would create more opportunities for collective bargaining to occur on a multi-employer basis, rather than being limited solely to individual workplaces or enterprises. Business groups have attacked this proposal as a dramatic change that would supposedly spark widespread work stoppages and industrial chaos.
IR Reforms To Close Off The ‘Nuclear Option’ Will Protect Wages and Entitlements
New research from the Centre for Future Work quantifies the dramatic risks faced by workers whose employers unilaterally terminate enterprise agreements during the course of renegotiations. This aggressive employer strategy, which became common after a precedent-setting 2015 court decision, would be curtailed by new industrial relations legislation proposed by the Commonwealth Government.
With household incomes set to fall, we need to think about what matters in the economy
The current tightening of monetary policy is undoubtedly having an impact. While it may take some time for the slowing of inflation to flow through to the official CPI figures – especially given the level of inflation that is being imported – the economy is set to slow drastically.
Would further interest rate rises do more harm than good?
In the past 7 months, the Reserve Bank has increased the cash rate by 275 basis points. That is as fast as any time since the RBA became independent. Given the pace of inflation growth, the rises are not wholly without cause, but as policy director, Greg Jericho notes in his Guardian Australia column the main drivers of inflation are now easing, and wages are yet to take off. In that case, should the RBA continue to raise rates given it will only slow the economy further?
October 2022
Inflation is soaring and real wages are plummeting
On Wednesday the latest inflation figures showed that in the 12 months to September prices across Australia grew by 7.3% – the fastest rate since 1990.
The Reserve Bank needs to acknowledge the failures of the inflation target
A comprehensive review of inflation released today by the Australia Institute’s Centre for Future Work reveals that the inflation targeting in place since the early 1990s is not the neutral policy many assume it is. In that time inflation has missed the target more from below than above, and has coincided with a shift of national income away from workers to profits as wages have stagnated.
Families change but the same problems remain
The latest data from the Bureau of Statistics on families shows that more than ever before couples with dependants are both working.
Webinar on Wages, Prices, and Power
The Australian Council of Trade Unions is sponsoring a series of webinars for union members, delegates, officials, and leaders on the current crisis in the cost of living in Australia. The surge in inflation since economic re-opening after COVID lockdowns has obviously intensified that crisis. But the seeds for it were planted long ago: by a decade of historically weak wage growth, a speculative property price bubble, and a systematic efforts to weaken collective bargaining and unionisation.
With a global recession looming the cure of inflation looks to be worse than the disease
This week the IMF released its latest World Economic Outlook. And the outlook is dire. Economic growth around the world was downgraded with recession-like conditions being predicted for many advanced economies including the USA, UK and much of the EU.
Yesterday’s Tomorrow Today – a new podcast from the Carmichael Centre at the Centre for Future Work
The Centre for Future Work and the Carmichael Centre are pleased to announce the launch of a new podcast project titled Yesterday’s Tomorrow Today, presented by the Laurie Carmichael Distinguished Research Fellow at the Carmichael Centre, Dr Mark Dean, and comedian and ecology researcher, Duncan Turner.
September 2022
The UK shows how bad the Stage 3 tax cuts will be
This week the UK government introduced massive high-income tax cuts – cuts that are not even as bad as the Stage 3 tax cuts here in Australia. And the reaction by the market was brutal. Investors saw the tax cuts for what they were – a redistribution of national income from the poorest to the wealthiest, that provided no economic growth. As a result the value of the UK Pound plunged.
International Seafarers Suffer $65 Million in Wage Theft Annually in Australian Waters
Seafarers working on foreign-registered freight ships in Australian waters face regular theft of wages and other entitlements due to legal loopholes and lax enforcement of labour standards, according to a new research report published today by the Australia Institute’s Centre for Future Work. The report, titled Robbed At Sea, examines records of wage inspections conducted
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