Why has wage growth been so low?
Wage growth is one of the indicators that the Reserve Bank of Australia (RBA) uses before they decide to raise interest rates. Low wage growth is one reason why the RBA is not yet raising interest rates. Low inflation is the other reason. Inflation is sitting under the RBA inflation rate of 2-3%. The current inflation rate 1.9%. We have had the longest period of low wage growth since the early 1990s. Wage growth is an important factor for firms …