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Australia's economy is booming, but workers are missing out as their share of income nears the lowest level on record

Business Insider Australia logo Business Insider Australia 5/09/2018 David Scutt

© Getty Australia's economy may be getting larger, but the share of national income going to workers is getting smaller.

It's actually nearing the lowest levels on record.

Here, look.

a screenshot of a cell phone screen with text © Supplied

From the Commonwealth Bank, it shows the share of wages and company profits as a percentage of national income.

According to the ABS, total compensation of employees (COE) -- including changes in wages, employment and hours worked -- grew by 0.7% in the June quarter, leaving it up 4.8% over the year.

Per employee, the average increase was significantly smaller, lifting just 0.1% for the quarter and 1.6% over the year.

In contrast, company profits rose by 1.0% over the quarter, leaving the increase from a year earlier at 8.8%.

So while employee wages continue to increase, and are still the largest component, the share of the national income pie is getting smaller as company profits increase at a faster rate.


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