Original article by David Marin-Guzman
The Australian Financial Review – Page: B8 : 3-Apr-19
The April 2019 Budget papers show that the federal government has scaled back its wage growth forecasts since the mid-year economic and fiscal outlook. It now expects wages to grow by 2.5 per cent in 2018-19 and 2.75 per cent in 2019-20. Wages growth in 2020-21 in turn is expected to be 3.25 per cent. In contrast, the Reserve Bank has forecast wages growth of about 2.5 per cent until 2020, and 2.6 per cent by mid-2021. Meanwhile, the unemployment rate is forecast to be five per cent over the forward estimates period, while the labour participation rate is expected to ease to 65.5 per cent in 2018-19.