Dec 2018 | Workers’ Share of Economic Pie Shrinks Again

Date: 6 Dec 2018

Source: Medium 

For the third consecutive quarter, the share of Australian GDP paid out in wages, salaries and superannuation contributions to workers has shrunk.

Data for the September quarter of 2018, released by the Australian Bureau of Statistics on Wednesday, shows that labour compensation accounted for just 46.85% of total economic output — one of the lowest on record.

That represents the third consecutive quarterly decline in relative labour compensation.

“A decline in the labour share of GDP indicates that workers’ wages and salaries are not keeping up with the growth of Australia’s economy,” explained Dr. Jim Stanford, Economist and Director of the Centre for Future Work. “And given that GDP growth itself was very anemic in the September quarter (expanding just 0.3%), that’s an especially weak result.”

The labour share of GDP is now on track to set a new record low for 2018, below even last year’s average of 47.1% — which was the lowest annual average labour share recorded since the ABS began gathering modern GDP statistics in 1958.