Thomas Greenwell, Senior Economist , ACTU
Australia is in the grip of a deep living standards crisis. Real wages remain stuck at 2011 levels, with many workers still worse off than before the pandemic. In the third paper of the Investment and Inclusion series, Thomas Greenwell explores how this crisis stems from decades of wage stagnation, weakened collective bargaining, and stubbornly high underemployment.
Although inflation has eased and wage growth returned in late 2023, the recovery is fragile. Real wages fell sharply between 2021 and 2023, and the gap between current incomes and pre-pandemic purchasing power remains stark. Greenwell argues that turning this around requires bold, coordinated reform centred on rebuilding worker power and embedding full employment as a core national objective.
His key recommendations include:
- Expanding collective bargaining rights, particularly for multi-employer agreements
- Raising minimum and award wages to establish a strong and relevant safety net
- Embedding full employment into fiscal and monetary policy – including reforms to the Charter of Budget Honesty and creation of a Full Employment Commission
- Redefining full employment to ensure jobs are not just available, but also safe, secure and fairly paid
Greenwell also highlights the need to strengthen and protect reforms such as Secure Jobs, Better Pay and Closing Loopholes, which are under pressure from employer resistance.
His message is clear: restoring real wages requires restoring collective power, making full employment a central policy goal, and ensuring wage growth lifts living standards – not just keeps up with inflation.
📘 Read Thomas Greenwell’s full paper in the Investment and Inclusion series