A new report by the McKell Institute has revealed that the average frontline worker has not had a real pay rise for more than a decade. The report, A Decade of Wages Lost, sheds light on the scale and impact of the nation’s nominal wage increase and its recent decline. The report shows annual real wage declines over the last 18 months have left wages lower than they were 10 years prior.

The report also found that the average real wage in Australia is lower now than at any point since September 2011. Some occupations, including nurses and corrections officers, have lost almost $3000 in real wages compared to a decade ago. Even teachers, who have experienced a small real wage increase, have seen wages rise by just 0.6% in a decade. Queensland experienced the greatest real wage decline in Australia at 2.5%, while Australia’s two largest states were on par with average real wages in 2012. They have since fallen in NSW, while Victoria has among the highest in the country.

Report author and CEO of the McKell Institute Michael Buckland warned policymakers to be cautious about placing downward pressure on wages. Buckland added that real wages are at their lowest level in years, with the nominal wage growth over the last few years wiped out by inflation.

“Workers across Australia have been exposed to the onset of inflation and low wage growth and will be worse off for years to come. Paramedics, registered nurses, correctional officers and firefighters are getting paid less, and have a lower standard of living today than they did 10 years ago. Government policies have been driving anaemic wage growth. This has included public sector wage freezes, inaction on wage theft and an expansion of the gig economy without adequate regulation. The federal government will no doubt prioritise reducing inflation, but it must also balance this with recovering a decade of lost wages for workers. It will take years to regain the wage growth that has been fought for and now lost,” Buckland said.

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