Employers and economists have warned the 7 per cent minimum wage rise demanded by unions would make it impossible to contain inflation, pushing the nation into recession.
Employers and economists have warned the 7 per cent minimum wage rise demanded by unions would make it impossible to contain inflation, tipping the nation into recession.
He joined other economists who said a 7 per cent claim could drive interest rates to above 5 per cent and undermine real wage growth. “Australian families, already under pressure from increases in mortgage repayments, would face further strains on their budgets and living standards. In addition, they would face an increased likelihood of job losses and reductions in hours of work,” he said.
But he rubbished the ACTU’s arguments that the wage rise was affordable because of soaring corporate profits. “The reality is what central banks are worried about and have been for six months is that as pandemic-inflation shoots pass we’re left with a domestic inflation problem largely driven by wages and other factors like energy prices,” he said.
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