The Squiz

It might not feel like it, but Australia has notched the fastest quarterly wage growth since records began 26 years ago. Yesterday, the Bureau of Stats said wages rose 1.3% in the July-September quarter – mostly off the back of increases to the minimum wage and new financial year pay negotiations that factored in a pay bump to reflect our high inflation rate. The private sector saw the highest wage growth of 4.2%, while public sector wages grew 3.5%. But it’s not all good news… Economist Callam Pickering says wages “are still down around 7% from their peak and are hovering around their lowest level in 13 years”.

Is that why I’m not rolling in cash?

That’s part of it… To explain, Australia’s inflation rate came in at 5.6% in September. The Reserve Bank wants it to get down to 2-3%, which is why it’s hiked interest rates to a 12-year high of 4.35%. Mortgage holders don’t need a reminder, but that’s hitting Aussies’ back pockets in the form of bigger mortgage payments/rent costs. And to Pickering’s point about inflation’s effect on wages, analysis by the Financial Review (paywall) shows that Australia has recorded the largest decline to disposable household income in the developed world over the past year. 

So when will I start to get ahead?

According to the experts, the current situation is not likely to change until the end of 2024… And that’s something that’s been a big focus at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco this week… Global finance and trade ministers have been meeting ahead of the leaders’ gathering at the end of the week – Trade Minister Don Farrell used the occasion to say he’s “very confident” that China’s trade restrictions will be removed by Christmas. Speaking of… Presidents Xi Jinping and Joe Biden are just heading into their long-awaited face-to-face meeting this morning. With a lot riding on it, reports say the pair have trade, human rights, the issue of Taiwan’s independence, climate agreements and the China-US drug trade on the agenda. Just a bit to talk through, then…