Six years of record low wage growth continues to cut into consumer spending, according to figures released this morning by the ABS showing retail sales dropping by 0.1 per cent in April.
Working people are cutting almost all discretionary spending as wages continue to flatline.
The wage growth crisis will not be solved by a cut to interest rates, or by a government which tells working people to wait for even more corporate tax cuts to trickle down.
We need to make systemic changes to give working people the power they need to fight for and win pay rises.
As stated by ACTU Assistant Secretary Liam O’Brien
“Retail sales dropping by 0.1 per cent shows the extent of the wages crisis and just how much working people are having to cut back.
“The wages crisis is a national issue and the lack of action from the Morrison Government is making life harder for millions of Australians.
“Working people are not getting the fair pay rises we need to stay ahead of crucial living costs like electricity, housing, gas and fuel. People are eating into their savings to cover their basic living costs.
“It shouldn’t be surprising to anyone that we are seeing low consumer spending and retail sales when we are still near record low wage growth, and have been for six years.
“Cutting interest rates is the not a silver bullet. We need to give working people the power they need to win real wage increases.
“The only way out of a crisis caused by low wage growth is improving the take home pay of working people. The Morrison Government cannot use rate cuts as an excuse to ignore the central problem.”
