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Australians told to demand a pay rise NOW

Australians told NOW to demand a raise – and there’s one thing you can do if your boss disagrees

  • Research by Hays found that nine out of ten bosses plan to implement pay increases
  • The problem is that only 37 percent were willing to offer a raise of 3 percent or more
  • That’s well below 5.1 percent inflation, which is now expected to get much worse

Australian workers are advised to lobby their boss for a decent pay raise or to change jobs, with inflation expected to hit its highest level in 32 years by Christmas.

A Hays recruiting survey of more than 4,400 employers found that nine out of ten bosses planned to grant wage increases this year as the cost of living rises.

The problem is that only 37 percent of them approve salary increases of more than 3 percent.

In the period to March, inflation rose by 5.1 percent, the highest level since 2001.

The Commonwealth Bank now forecasts inflation to rise to 6.25 percent by the end of 2022, the highest level since the December quarter of 1990.

Australian workers are advised to lobby their boss for a decent pay raise or to change jobs, with inflation expected to hit its highest level in 32 years by Christmas (pictured is a stock image)

Australian workers are advised to lobby their boss for a decent pay raise or to change jobs, with inflation expected to hit its highest level in 32 years by Christmas (pictured is a stock image)

That means the vast majority of Australian workers would actually receive pay cuts, even if their pay rose by more than 3 percent for the first time since 2013.

Wages are growing at just 2.4 percent, or less than half of inflation, and the Commonwealth Bank expects wage growth to be just 3.25 percent by early 2023.

Half of Australian workers now want to change jobs if their boss doesn’t give them a decent raise.

The Hays survey of 4,425 skilled professionals in Australia and New Zealand found that 49 percent of respondents were looking for a new job because of an uncompetitive salary, ahead of poor promotion opportunities and poor management or work culture.

Nick Deligiannis, Hays’ general manager in Australia and New Zealand, said bosses should ask their staff what was troubling them after the upheaval of the pandemic.

“Employees are rethinking what they want from work,” he said.

“Viewing your employees as your most important customer and applying competitive pay, benefits and upskilling techniques can help you overcome the current skills shortage.”

Despite the struggles to recruit or retain staff, CommSec senior economist Ryan Felsman said supply chain pressures are erasing revenues, leaving less room for employers to offer decent pay increases.

A Hays hiring survey found that only 37 percent of employers were willing to offer pay increases of more than 3 percent, while Commonwealth Bank now forecasts inflation at 6.25 percent - the highest since 1990 (pictured is a Woolworths shopper in Sydney)

A Hays hiring survey found that only 37 percent of employers were willing to offer pay increases of more than 3 percent, while Commonwealth Bank now forecasts inflation at 6.25 percent – the highest since 1990 (pictured is a Woolworths shopper in Sydney)

Commonwealth Bank’s New Interest Rate Forecasts on RBA Cash Rates

JULY: 0.5 percentage point up to 1.35 percent

AUGUST: 0.25 percentage point up to 1.6 percent

SEPTEMBER: 0.25 percentage point up to 1.85 percent

NOVEMBER: 0.25 percentage point up to 2.1 percent

“Cost pressure, which erodes profit margins, is holding back private sector companies,” he said.

Unemployment fell to 3.9 percent in April, the lowest level since August 1974.

In May, the number of jobs advertised on the internet rose 0.9 or with new 2,754 positions available to a 14-year high of 298,375 spots, data from the National Skills Commission shows.

The Commonwealth Bank expects unemployment to fall further this year to 3.75 percent.

But it also forecast unemployment to fall to 4.5 percent by the end of 2023, as the supply chain crisis, high inflation and a series of rate hikes slowed Australia’s economic momentum.

CBA, Australia’s largest bank, now expects the Reserve Bank to raise interest rates by 0.5 percentage points in July, followed by increases of 0.25 percentage points in August, September and November, pushing the spot rate to 2.1 percent. would come – an increase of 0.85 percentage points. cent.

“Our expectation is that the current economic boom in Australia will continue for a while and the labor market will remain tight, so we don’t expect a failure,” it said.

“But growth momentum is expected to slow significantly in late 2022 due to a rapid and aggressive RBA tightening cycle.”

Prime Minister Anthony Albanese’s government has written a letter to the Fair Work Commission ordering a 5.1 percent wage increase, in line with inflation, for Australia’s 2.7 million minimum wage and low-paid wage workers.

Ensuring that real wages for low-paid workers do not decline under these circumstances will protect the relative standard of living of these workers, prevent further financial hardship and prevent adverse distribution outcomes and broader economic and social risks.

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