Workers’ share of GDP hits all-time low
Productivity and profits are up, but workers aren’t getting the benefits.
Productivity is growing at almost twice the average rate over the past decade and profits are increasing at more than 20 per cent, but the labour share of GDP has hit an all-time low, according to figures released by the Australian Bureau of Statistics.
The economy grew at 3.3 per cent over the last year. Productivity grew 2.8 per cent in the year to March, almost triple the average of about 1 per cent over the past decade. Business profits doubled to reach 21.6 per cent for the year to March, while the labour share of national income fell to the lowest on record at 45.1 per cent.
The ACTU says urgent action is needed to ensure that working people share in the wealth of the economy and in the recovery from the pandemic.
“Productivity and profits are at record-high levels, while workers are experiencing both real wage cuts and a cost-of-living crisis,” said ACTU Secretary Sally McManus.
“Action must be taken to ensure the over 13 million working people of our country are sharing in our nation’s prosperity.
“The ABS data reveals that businesses can easily afford fair wage increases that would stop further real wage cuts and address the cost-of-living crisis. It’s time for action to end years of low wage growth and real wage cuts.”