Wages growth keeps trailing the inflation rate

THE PROBLEM

As most workers would know, it has been hard to get a pay rise in recent years. And with inflation picking up, the cost of living has become a big issue for households.

But low wages growth is not just a recent thing. In its issues paper released before last month's jobs summit, the federal government said real wages (after inflation) have grown by only 0.1% a year over the past decade and have declined substantially over the past year.

With inflation currently running at over 6% and predicted to come closer to 8% by the end of the year, wage earners have good reason to feel they're