84% of Australians worried about wage stagnation amid inflation

Australians are worried about flat wage growth as inflation increases, according to a new survey.
 30% of Australians report they are “extremely worried” about inflation outpacing income
 84% of Australians are worried to some degree about flat wage growth
 38% of Australian women say they’re “extremely worried” about wages falling behind inflation
 34% of Australians have reported their wages have not gone up over the past year

A survey into the cost of living commissioned by Savvy shows that 84% of Australians are worried about
their incomes will not keep up with the rate of inflation in the economy.

30% of Australians are “extremely worried”, 22% are “very worried” and 32% are “worried” that their
wages will not grow in relation to rising prices across almost all sectors.

At the moment, inflation is at 6.1%. Wages have only increased 2.6% from the June 2021 quarter to the
June 2022 quarter.

36% of women and 32% of men reported that their wages have not increased at all over the past year.

26% of Australians have said their wages have increased by at least 1% to 5%, and only 7% of
respondents say it’s outpaced inflation with a rise somewhere between 6% to 10%.

Savvy CEO Bill Tsouvalas says that high unemployment and the RBA putting the brakes on the economy
will eventually lead to wage increases. “It is inevitable that wages will rise, but that won’t come until at
least 2023 or 2024,” he says. “The problem is that workers are feeling less well off as prices go up on
everything from groceries and fuel to mortgages and utilities. For those on lower incomes already, or
with many mouths to feed, this really has been the winter of their discontent.”

“The one glimmer of hope is that with unemployment this low, workers are in a better position to
negotiate higher wages. If they feel undervalued at their current position, now is the time to look to
greener pastures, because they are most definitely there.”