RBA concerned underemployment will lead to further inflation rises

26 February 2008


Fewer part-timers are willing to work longer hours, causing concern that workforce shortages will force up wages, and inflation with them.

This concern goes against salary indicators, such as the wage price index which last week showed 4.2 per cent growth in wages for 2007, comparable to the previous two years.

The shortage of labour may not be a problem for the country as a whole, though. The Australian Bureau of Statistics has found that 18 per cent of part-time workers who need more hours would be willing to move interstate, suggesting companies may need to look widely for potential employees.

Source: Australian Financial Review


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