Original article by Michael Read, James Hall
The Australian Financial Review – Page: 1 & 4 : 14-Jan-25

S&P Global Ratings analyst Martin Foo has warned that demands for big public sector wage rises could more negatively impact on state governments’ budget bottom lines that treasurers had forecast. Foo notes that some recent above-average pay rises in the public sector could have a flow-on effect, with other unions likely to seek to match them. Foo adds that changes to some state governments’ public sector wage caps may also have contributed to higher wage claims. AMP’s chief economist Shane Oliver says state governments have limited ‘wiggle room’ to increase public sector wages.

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S&P GLOBAL RATINGS, AMP LIMITED – ASX AMP