Workers who don’t jump ship to more successful companies are keeping wage growth low, new Treasury research says.
Federal Treasury deputy secretary Meghan Quinn outlined the new analysis at the Economic Society of Australia’s annual conference in Melbourne on Tuesday.
The research shows employees who refuse to leave their under-performing companies for more dynamic ones affect pay increases across the economy.
“Treasury work highlights the fact more frequent job switching is associated with higher real wage growth, even for those that stay in their job,” Ms Quinn said.
But Labor frontbencher Jason Clare said it was “a bit rich” to blame workers for low wage growth, when companies controlled wage budgets.
“If today the government’s argument is that workers are to blame for wages not going up, then it shows that this is a government which is really out of touch,” Mr Clare told Sky News.
“People are struggling to pay the bills right now, can’t get enough hours at work.
“There were statistics that came out a couple of weeks ago that showed there are more people behind on their mortgage today than any time in the last 10 years.”