The days of 4% pay rises are behind us – wages are now barely growing faster than inflation

‘In March 2021, average full-time earnings was about $90,000 a year. Now those $90,000 have the purchasing power of $85,862 – a loss of $4,138 worth of spending.’ Photograph: Bloomberg/Getty Images

The latest wage figures show no sign of wages growth powering inflation, as the real value of private-sector wages fell in the September quarter.

Other than inflation, the figures the Reserve Bank of Australia most keeps an eye on are the quarterly wages growth figures. These give us a sense of whether there is so much competition for jobs that employers are offering higher wages and workers can demand higher wages without fear of their hours being cut.