RBA flags concern on workforce
THE Reserve Bank is grappling with the changing nature of Australia’s workforce, as the rise of the part-time worker keeps the handbrake on wage growth.
The minutes from the RBA’s May 2 monetary policy meeting, at which it kept the cash rate on hold, yesterday exposed lingering concerns over the labour market and house prices even as inflation and economic growth rises.
Of particular concern was the sustained jump in part-timers, which at a third of the workforce was “relatively high by international standards”.
The central bank said students, mums aged between 25-44 and some older workers were favouring part-time work, some citing a lack of fulltime opportunities as their reason.
In turn, this was helping to keep a lid on wage growth, which is tracking near 20-year lows.
“Members noted that, although it seemed unlikely that wage growth would slow much further, wage pressures were expected to rise only gradually,” the minutes said.
Elsewhere, the RBA noted concern over higher domestic gas and electricity prices.