Moreover, with inherent slack in the labour market and in keeping with the French theme, wages appear likely to progress at a snail's pace over the next couple of years as the impact of our plummeting terms of trade wash their way through the economy.
State Versus State - Mining State and Public Sector Pain?
Back to wages growth, here is what has happened to the wage indices by state over 1, 5 and 10 years respectively.
Over the last decade, some mining-focused states have seen wages pumped up to the max, with the mining construction boom holding up for much longer many of us anticipated.
I exited the resources industry myself in 2010 as construction gave way to production, potentially foregoing a decent number of ZEPOs in the process I might add!
Partly that's because I felt that commodity prices and the outlook would decline, but in truth it was mostly because analysing monthly production data for ASX releases and squeezing operation costs until the end of time seemed relatively speaking rather dull.
Yet in the event, mining construction activity in the economy has remained elevated for a long, long time.
Guess what happens to mining wages next?
Meanwhile budget cuts to the public sector have shifted labour market expectations adversely in Canberra and wages growth in the ACT has dived to just 1.7 percent year-on-year, well behind inflation and a statistically significant wages decline in real terms.
The chart tells its own story. The mining construction boom brought wages growth, but now...