Australia’s income depression deepens

The collapse in Australia’s household incomes has been well documented on Macro Business …

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Photo: The Conversation

Australia’s income depression deepens

By Unconventional Economist in Australian Economy

November 19, 2019 | 16 comments

The collapse in Australia’s household incomes has been well documented on this site, including:

1. Real Average compensation per employee, which has fallen 2.9% since March 2012:

2. Quarterly real per capita household disposable income, which has fallen by 1.6% in the seven years to June 2017:

Today, I want to turn to the annual State Accounts, which were released last Friday by the ABS, and shows that nominal gross household income per capita rose by just 1.1% in the year to June 2019, which was a deterioration on the prior year and way below the early-1990s recession:

Annual growth in nominal gross household income per capita has averaged 4.0% growth since 1992, which highlights just how much things have changed.

When adjusted for capital city CPI, the situation is obviously much worse, with real gross household income per capita falling by 0.5% and sliding for four consecutive years:

In fact, as shown below, real gross household income per capita is lower today than it was in June 2012 – down 2.0% over the past six years:

*The situation is no better at the state level, with all mainland states except QLD experiencing falling real gross household income per capita:

*This is yet more evidence of the income recession afflicting Australia’s household sector. And it is broad-based and long-lasting. Indeed, as H&H pointed last week, it about to overhaul the US Great Depression experience:

That’s what happens when scum runs your country.

Photo: The Conversation

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Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.