Treasurer tells Aussies how to get a pay rise

Treasurer Josh Frydenberg has made a daring declare about the easiest way for employees to spice up their pay packets amid main considerations about wage progress.

Australians eager to earn extra money will likely be urged to change jobs by the federal Treasurer, in a bid to maintain the nation’s labour market rising.

In a speech to the Australian Industry Group on Monday, Josh Frydenberg will encourage Australians to benefit from a “great reshuffle” to attain a pay rise and drive unemployment charges down.

Mr Frydenberg will quote Treasury evaluation that exhibits a file 300,000 employees within the December quarter mentioned they left their jobs for a brand new alternative, with the speed of individuals taking on new jobs now virtually 10 per cent larger than the pre-Covid common.

“Unlike some other countries, we are seeing a ‘great reshuffle’ rather than a ‘great resignation’,” Mr Frydenberg will say on Monday.

“There remain 2.8 million fewer Americans employed than before the pandemic, with the participation rate in the United States and United Kingdom … currently below their pre-pandemic levels.

“But here in Australia the opposite is true, the participation rate is close to its record high.

“A stronger and more dynamic jobs market leads to increased productivity and wages. Switching jobs allows workers to move up the job ladder for better pay.”

Treasury evaluation of Australian Taxation Office payroll knowledge exhibits employees who swap jobs sometimes get pleasure from a pay rise of between eight and 10 per cent.

“When workers are in high demand, businesses are more likely to invest in capital, making workers more productive and businesses more efficient,” Mr Frydenberg will say.

“It also leads to better job matching, moving higher skilled workers into higher skilled jobs. All of this helps to lift productivity.”

Opposition treasury spokesman Jim Chalmers advised Sky News on Sunday that Labor wasn’t planning to take care of a decade of wage stagnation with out coping with job insecurity, which he known as a “cancer” on the labour market.

“We want and we expect the economy to recover strongly in time but it needs to be a recovery that works for everyone,” Mr Chalmers mentioned.

“That’s why cost of living is so important. That’s why wages, childcare and all the other issues we’ve been talking about today are so important.”

Mr Frydenberg will use the speech to advertise the Morrison authorities’s plan to drive unemployment beneath 4 per cent this yr.

“This would be the first time since 1974,” Mr Frydenberg will say.

“This is not something anyone would have contemplated just two years ago as the economy stood on the edge of the economic abyss.”

He may even rule out persevering with to supply “crisis support” for companies onerous hit by Covid-19, as a result of continued assist at disaster ranges would do “more economic harm than good”.

“The reality is the economy simply cannot be conditioned to the level of unprecedented support that has been required over the last two years,” he’ll say.

“This level of government intervention must not become entrenched and become a permanent feature of our system.”

During his speech, Mr Frydenberg may even define the federal government’s plans to make speedy antigen assessments tax deductible, whereas companies buying testing kits for enterprise functions will likely be exempt from the Fringe Benefits Tax.

Read associated subjects:Josh Frydenberg

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