According to the RBA, more Australians are quitting their jobs for better-paying ones as they resume career moves that they put on hold earlier in the recession.
According to the minutes of the Reserve Bank of Australia’s 7 December policy meeting, workers were encouraged by the solid labour market conditions after the coronavirus lockdowns were lifted.
Professionals in the private sector were the most engaged, pressuring employers to increase wages. They were the only worker group to get a wage increase of more than 3% in the third quarter.
The higher compensation did not apply to everyone in the private sector. The RBA observed in a statement released on Tuesday that wage growth has only improved to approximately pre-pandemic levels.
Wage growth in the public sector remained low.
Board members, on the other hand, were curious to see if additional people followed in the footsteps of professionals and changed employment.
“Higher rates of voluntary job turnover in some industries, particularly in a tight labour market, may induce employers to offer higher compensation in the future to keep their workers,” the minutes stated.
Because of the pandemic’s lack of immigration, workers are able to negotiate higher compensation with companies that have fewer job candidates.
Wage growth could lead to increased inflation and, as a result, a rate hike by the RBA.
The development of the coronavirus Omicron variant was a source of concern, but board members did not believe it would jeopardise Australia’s recovery.
The RBA kept the cash rate at a record low of 0.1 percent at its meeting on December 7th.