News round-up: Money on everyone’s mind

In this week’s round-up of HR news, everyone is talking about money. The rise of wages, spending habits, and pay transparency law concerns were all discussed.

Labour market pushing wages up

As reported by HR Leader’s sister brand, Accountants Daily, wages have seen the fastest growth in a decade, rising 3.7 per cent over the past year.

According to the Australian Bureau of Statistics (ABS) acting head of prices statistics, Leigh Merrington, this jump in wages reflects the current state of the job market.

“Annual wages growth of 3.7 per cent is the highest since September quarter 2012, reflecting low unemployment, a tight labour market and high inflation,” he said.

The public sector saw a faster increase in the first quarter of 2023, rising 0.9 per cent. Annual growth in the sector rose from 2.5 per cent to 3 per cent. According to Accountants Daily, this was due to enterprise agreement bargaining and higher wage cap introductions.

Mr Merrington continued: “A number of private sector industries have recorded annual wages growth above 4 per cent, with the remaining industries all above 3 per cent annual growth.”

“Wage outcomes over the March quarter 2023 saw a continued lift in the share of jobs receiving wage rises of between 4 and 6 per cent, which is the highest share since 2009.”

Millennials suffering the most from inflation

Younger Australians are being hit the hardest by the rising cost of living, according to Sydney Morning Herald (SMH).

The CommBank iQ Cost of Living Insights report highlighted that under 35s are having to watch their spending more than their older counterparts, with those in their early 30s being hit hardest of all.

CommBank notes that Aussie’s in their late 20s to early 30s are having to juggle bills, with rent playing a key factor in the data.

“Renters are experiencing significant pressure. Rents are increasing by some of the highest amounts they have in some time,” said CommBank iQ head of innovation and analytics Wade Tubman.

Over 55s were reported to be spending the most of all age brackets, highlighting better financial stability for our older citizens.

Pay transparency backlash

As discussed by BBC, some are not happy with the introduced pay transparency laws in areas of the US.

According to BBC, while these introductions have helped in some ways, not enough is being done to create a real difference.

The legislation, introduced in areas such as New York and California, aims to remove unconscious bias and discrimination by providing transparency. This was supposed to be a win for women and minority groups, but BBC said the responses are mixed.

“While some data shows many employees are reluctant to even apply for jobs that don’t include salary ranges, which can benefit their earnings, many critics say that the legislation isn’t powerful enough to effect a notable change in the discrepancies that are still ubiquitous across many organisations,” noted BBC.

“Some say that while employers are generally complying with the letter of the law, there’s also evidence that many aren’t complying with the spirit of the law.”

Loopholes are reportedly a big concern for many. To help turn these opinions around, being more serious about the laws and enforcing them properly could see better results.