From 2008 Australian wages have increased on average by $1,404 pa. This is an increase of only $156 each year over a 9 year period, much less than the cost of living.
Unemployment remains low but we have seen a shift from higher paid work to lower paid contributing to low wages growth.
Wages as a % of Gross Domestic Product (GDP) has also decreased.
High debt and stagnant income is likely to impact consumer spending.
It also highlights the importance to see a qualified financial planner to make sure you are in a strong position and your cash flow is being used as efficiently as possible.
Source: Bloomberg
