By James Glynn
According to employment portal SEEK, the significant decline in Australian real wages over the past two years appears to be coming to an end, as advertised wage increases now surpass inflation rates in December.
In December, advertised salaries experienced a month-on-month growth rate of 0.3%, the same rate seen in October and November. For the year leading up to December, advertised salaries increased by 4.5%, consistent with the growth rate recorded in the year prior to November.
After a prolonged period of declining real wages, SEEK senior economist Matt Cowgill remarks, "Finally, advertised salaries are rising faster than prices once again." He further adds that the SEEK ASI (advertised salary index) is now experiencing growth in real terms, with the 4.5% increase in advertised salaries outperforming inflation at 4.3%.
The continuous decline in real wages has placed immense pressure on household budgets, which have also had to cope with escalating costs for essential needs and a significant surge in mortgage interest rates.
As a result of falling real wages, consumer confidence in Australia has plummeted to levels reminiscent of a recession.
To gauge advertised salary growth for jobs posted on SEEK in Australia, the SEEK advertised salary index is used as a measure.
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