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As part of Savvy’s research into cost-of-living pressures, many Australians are worried that flat wage growth will not keep up with soaring inflation.
- 30% of Australians report they are “extremely worried” about inflation outpacing income
- 84% of Australians are worried to some degree about flat wage growth
- 38% of Australian women say they’re “extremely worried” about wages falling behind inflation
- 34% of Australians have reported their wages have not gone up over the past year
Cost of Living in Australia
A survey into the cost of living commissioned by Savvy shows that 84% of Australians are worried about their incomes will not keep up with the rate of inflation in the economy.
30% of Australians are “extremely worried”, 22% are “very worried” and 32% are “worried” that their wages will not grow in relation to rising prices across almost all sectors.
At the moment, inflation is at 6.1%. Wages have only increased 2.6% from the June 2021 quarter to the June 2022 quarter.
36% of women and 32% of men reported that their wages have not increased at all over the past year.
26% of Australians have said their wages have increased by at least 1% to 5%, and only 7% of respondents say it’s outpaced inflation with a rise somewhere between 6% to 10%.
Bill Tsouvalas, Savvy Managing Director;
Savvy CEO Bill Tsouvalas says that high unemployment and the RBA putting the brakes on the economy will eventually lead to wage increases. “It is inevitable that wages will rise, but that won’t come until at least 2023 or 2024,” he says. “The problem is that workers are feeling less well off as prices go up on everything from groceries and fuel to mortgages and utilities, all the while savings may be declining. For those on lower incomes already, or with many mouths to feed, this really has been the winter of their discontent.”
“The one glimmer of hope is that with unemployment this low, workers are in a better position to negotiate higher wages. If they feel undervalued at their current position, now is the time to look to greener pastures, because they are most definitely there.”
For more information, contact Adrian Edlington – [email protected]
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