Labour markets and wages in Australia: 2008

The Australian economy in 2008 was one of contrasts: the resource based states continued to grow at relatively higher rates than the remainder; wage and employment outcomes varied widely for different groups in the labour force; and domestic climate change policies achieved prominence just as a global economic downturn lead to rapidly changing macroeconomic conditions. Within this rapidly changing context, ongoing concerns with labour utilization, wage equity and issues of compliance appear likely to grow in significance

Wages and wage determination in 2007

In 2007 money wages rose marginally faster than in 2006 but there was no evidence of generalized wage pressures arising from skill shortages. The Reserve Bank raised interest rates twice during the year, further reducing housing affordability. The Fair Pay Commission decision in July temporarily restored the real wages of the lowest paid, but there was further compression of the lower deciles of the wage distribution. With petrol prices continuing to rise, household living standards are under threat, particularly those of workers reliant on the wage adjustment through the Commission whose next decision will not be operational until October 2008. The election of the Labor Government in November led to speculation as to extent to which the Work Choices legislation would be amended

The Australian labour market in 2006

2006 generally represented a solid year in terms of macroeconomic performance and labour market indicators, even under the threat of increasing inflation and interest rates. However, some favourable aggregate labour market indicators disguised major disparities at disaggregated regional, sectoral or demographic levels. The major development in the labour market was the implementation and operation of the Work Choices legislation, which will shape the industrial relations landscape in Australia for many years to come. This article presents an analysis of the performance of the macroeconomy and labour market, and reviews the developments of the Work Choices legislation