Wage growth contained, but competitiveness challenges remain

This article focuses on analysis of one of the continuing weak links in Australia’s competitive performance – wage flexibility within non exporting firms. As the economy faces stiff growth headwinds in the years ahead, it will be vital for wage growth to remain constrained if unemployment is to stay relatively low, and support economic transition. With domestic-market focussed businesses no longer able to carry the labour market single-handed can Government policy respond and rise to the new growth challenges ahead?

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