The economic slowdown is having an effect on Aussie workers wages, as they expanded by the slowest pace in five years according to ABS data.
Total hourly rates of pay, excluding bonuses, rose 0.8 percent in the March quarter, matching expectations but was the slowest quarterly growth since March 2004.
JP Morgan economist Helen Kevans said the slowdown in wages growth was reflective of a tougher economic climate for businesses, where redundancies are becoming common place.
“We expect that wage growth will continue to moderate amid deteriorating labour market conditions. Already, the jobless rate has risen by 1.5 percentage points from its low last February.
“The avalanche of anecdotal job losses announced recently and leading indicators of employment … suggest that this rate can only go higher, adding further to substantial evidence that a significant labour market adjustment is under way,” said Kevans.
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