As corporate profits continue to climb, new research from the Centre for Future Work shows the share of Australian GDP paid out to workers is hovering at a post-war low.
Key findings:
- From peak levels of 58% of GDP in the mid-1970s, labour compensation declined to just 47% in 2017 — the lowest since 1960
- Real wages have consistently lagged behind ongoing growth in labour productivity
- The loss of labour’s share of GDP translates into the redirection of over $200 billion in income per year from workers to other groups in society (mostly corporations)
“The decline in Australia’s labour share from the 1970s peak to the present ranks among the worst of all OECD countries, even worse than the United States,” said Dr. Jim Stanford, Director of the Centre for Future Work.
Related research
Exploring the Decline in the Labour Share of GDP