Wage growth

[3] Wage growth can also be maximised through the development of industry factors by investing skilled workers in which decision made by businesses.

[4] More financial compensation for skilled workers not only lifts wage growth but stimulates higher market prices in the economy.

[5] Higher labour productivity (measured by GDP per worker) stimulates price inflations in resulting in a rise in real wage growth.

[4] One of the major factors for the recent sluggish wage growth in advanced countries is caused by their lower labour productivities.

However, this economic trend has dramatically changed since many countries have experienced low wage growth due to the Global Financial Crisis (GFC) in 2008.

[5] The Economic Policy Institute reports that the current sluggish wage growth and lower labour productivity are driven by the abandonment of full employment as more flexible employment styles have become accepted due to the significant progress in automation, technological change and increasing global production integration.

[19] Due to the Global Financial Crisis (GFC), the United States also experienced a significant decline in wage growth like the other advanced countries.

[20] Like the weak wage growth in Australia, the United States is also experiencing a struggle because of the recent significant development in globalisation and automation where the competition with lower-paid workers overseas and robots was created.

[25] Other factors that contribute to the current sluggish weak wage growth include the decline of labor unions, poor educational attainment and lack of competitiveness in the labour market.

[25] The decline of labour unions and the emergence of big corporations made difficulties for workers to negotiate for a higher wage.

Due to the emergence of educated women (on bachelor level or higher) in the labour force, the real wage growth in male have been decreasing since 1979.

[26] As a result, the wage growth gap depending on the education levels has widened than years past.

This graph illustrates the global wage growth of pre-GFC, GFC and post-GFC demonstrating the significant decline in wage growth after the GFC in most of the advanced countries, obtained data from the OECD Statistics . [ 6 ]
This chart illustrates the wage growth of Australia in both public and private sectors comparing pre-GFC and post-GFC obtained data from the Australian Bureau of Statistics . [ 12 ] It demonstrates the significant decline in wage growth after the GFC in both sectors in Australia.
This graph demonstrates seasonally Adjusted Average Weekly Wage Growth in the UK, which data obtained data from the Office for National Statistics [ 14 ]