Money

New research links slow wage growth to IR hurdles

Published

1 year ago

February 15, 2024

Ahron Young

New research sheds light on the sluggish wage growth in Australia, attributing it to barriers hindering job mobility compounded by regulatory hurdles.

According to the study, barriers such as non-compete clauses, occupational licensing rules, and soaring house prices are impeding workers, firms, and the economy from reaping the benefits of job switching.

“The rate of workers transitioning between jobs has seen a decline in recent years, despite the labor market experiencing unprecedented strength. Job switching rates have only marginally increased from 8.5 per cent in 2019 to 9.5 per cent in 2023,” stated e61 Senior Research Economist, Aaron Wong.

Young Aussies selling their first homes as mortgage stress bites

Wong further emphasised, “The reluctance of individuals to switch jobs even amidst favorable market conditions signals fundamental issues within the Australian labor market.”

Current jobs

The research revealed that individuals who did manage to switch jobs experienced a substantial 9 percentage point increase in wages compared to their counterparts who remained in their current positions.

For the median wage earner, this translates to an annual pay rise of approximately $5,700.

Younger workers, particularly those aged between 21-34, witnessed even higher wage growth, with an average annual pay increase of $7,500.

City vs regions

The study also highlighted regional disparities, showing that workers in capital cities tended to benefit more from job switching, with an average wage increase of $6,300 compared to $4,300 for regional workers.

This divergence primarily stems from the disparity in available employment opportunities between urban and rural areas.

CEO of e61 Institute, Michael Brennan, underscored the role of regulatory barriers in inhibiting job mobility, stating, “Workplace laws, including non-compete clauses and complex occupational licensing requirements, may deter workers from pursuing better job opportunities.”

Policy help

Brennan further added, “Policy interventions aimed at fostering a more dynamic economy and facilitating easier job transitions are essential to unlocking the full potential of wage growth.”

Aaron Wong echoed this sentiment, emphasising the need for policies that promote entrepreneurship and innovation, stating, “Encouraging competition among firms for skilled workers and facilitating smoother job transitions would not only enhance wage growth but also foster a more efficient matching of skills and job opportunities.”

Money

Secret IMF meeting sparks US-China truce

Covert IMF meeting sparks US-China trade breakthrough with 115-point tariff cut for 90 days, marking significant progress since the Trump trade war.

Published

22 hours ago

May 14, 2025

ticker NEWS

Covert IMF meeting sparks US-China trade breakthrough with 115-point tariff cut for 90 days, marking significant progress since the Trump trade war.

A covert meeting in the basement of the IMF has set off a diplomatic shockwave, leading to a major breakthrough in US-China trade talks.

Top officials from both nations have now agreed to slash tariffs by 115 points for 90 days—marking the first real progress since the Trump-era trade war began.

More stories like this, subscribe now: https://www.youtube.com/@weareticker

#USChinaTruce #TariffRollback #IMFSecretMeeting #TradeWar #TickerNews #EconomicCeasefire #TrumpTariffs #GlobalMarkets #GenevaTalks

Money

Gen Z and millennials surpass boomers in voting power

Gen Z and Millennials outnumber Baby Boomers in Australian elections, signaling potential reforms in taxation and inheritance laws.

Published

2 days ago

May 13, 2025

ticker NEWS

Gen Z and Millennials outnumber Baby Boomers in Australian elections, signaling potential reforms in taxation and inheritance laws.

For the first time in history, Gen Z and Millennials now outnumber Baby Boomers at the ballot box in Australia, marking a seismic change in the country’s political landscape.

Experts say this electoral milestone could spark major reform debates on taxation, superannuation, and inheritance laws as younger voters prioritise different values.

Subscribe for more political analysis: https://www.youtube.com/@UCiMroZIXuwlSh1r5wZdeU6Q

#AustraliaPolitics #GenZ #Millennials #Boomers #TaxReform #Superannuation #Inheritance #StevenEnticott #CIA #MoneyMatters #TickerNews

Money

Stocks decline as tariffs and trade tensions escalate

Stocks drop as tariffs worry investors; gold hits record high; Canada resists U.S. annexation talk.

Published

1 week ago

May 7, 2025

Ahron Young

Stocks drop as tariffs worry investors; gold hits record high; Canada resists U.S. annexation talk.

In Short:
Stock indexes declined on Tuesday after a nine-day winning streak, while gold prices soared amid economic concerns. Major companies like Ford and Mattel adjusted forecasts due to tariff impacts, and the trade deficit hit a record high of $140.5 billion.

Stock indexes fell on Tuesday, following declines in the Dow and S&P 500 after a nine-day winning streak.

Gold prices reached a new record as markets reacted to ongoing economic concerns.

The downturn persisted following a meeting between Canadian Prime Minister Mark Carney and President Trump, where Carney rejected any notion of Canada being for sale.

Investors showed continued apprehension about the impact of U.S. tariffs and the absence of new trade agreements, particularly as major companies like Ford and Mattel suspended annual guidance due to tariff uncertainties.

Ford impact

Ford, while less affected than competitors, estimated potential tariff impacts could reduce profits by $1.5 billion, prompting a 2.8% increase in its stock.

In contrast, Mattel’s stock rose by 2.6% after it signalled a potential increase in U.S. toy prices, anticipating a $270 million hit from tariffs, while also planning to move manufacturing from China.

Both WK Kellogg and Marriott International adjusted their financial forecasts downward due to tariff-related challenges and broader economic uncertainties.

Clorox shares fell sharply after the company updated its guidance to reflect tariff impacts.

Additionally, President Trump indicated he would announce the details regarding pharmaceutical tariffs within two weeks.

On a related note, new data revealed the trade deficit reached a record $140.5 billion in March, exceeding economists’ expectations and reflecting a surge in imports amid trade policy changes.