84% of Australians Worried About Wage Growth Amid Inflation

Australians are worried about flat wage growth as inflation increases, according to a new survey
Published on September 8th, 2022
  Written by 
Adrian Edlington
Adrian Edlington is PR & Communications Manager at Savvy. With a keen interest in personal finance, car loans, the mortgage industry, cost of living pressures, electric vehicles and renewable technology, Adrian's research includes conducting primary data surveys and analysis of up-to-the-minute secondary Australian data sources. His work on behalf of Savvy has been featured on ABC.net.au The Conversation, the Sydney Morning Herald, AFR, News.com.au, The Age, Herald Sun, Adelaide Now, SBS On The Money, 7News, Car Expert, Which Car, Drive.com.au and more. In his spare time, Adrian enjoys mountain biking and business podcasts.
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Woman worried about wage growth in Australia

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As part of Savvy’s research into cost-of-living pressures, many Australians are worried that flat wage growth will not keep up with soaring inflation.

  • 30% of Australians report they are “extremely worried” about inflation outpacing income
  • 84% of Australians are worried to some degree about flat wage growth
  • 38% of Australian women say they’re “extremely worried” about wages falling behind inflation
  • 34% of Australians have reported their wages have not gone up over the past year

Cost of Living in Australia

A survey into the cost of living commissioned by Savvy shows that 84% of Australians are worried about their incomes will not keep up with the rate of inflation in the economy.

30% of Australians are “extremely worried”, 22% are “very worried” and 32% are “worried” that their wages will not grow in relation to rising prices across almost all sectors.

At the moment, inflation is at 6.1%. Wages have only increased 2.6% from the June 2021 quarter to the June 2022 quarter.

36% of women and 32% of men reported that their wages have not increased at all over the past year.

26% of Australians have said their wages have increased by at least 1% to 5%, and only 7% of respondents say it’s outpaced inflation with a rise somewhere between 6% to 10%.

How much has your pay increased over the past year - graph
Graph: How worried are you that your income won’t keep up with the rate of inflation?

Bill Tsouvalas, Savvy Managing Director;

Savvy CEO Bill Tsouvalas says that high unemployment and the RBA putting the brakes on the economy will eventually lead to wage increases. “It is inevitable that wages will rise, but that won’t come until at least 2023 or 2024,” he says. “The problem is that workers are feeling less well off as prices go up on everything from groceries and fuel to mortgages and utilities, all the while savings may be declining. For those on lower incomes already, or with many mouths to feed, this really has been the winter of their discontent.”

“The one glimmer of hope is that with unemployment this low, workers are in a better position to negotiate higher wages. If they feel undervalued at their current position, now is the time to look to greener pastures, because they are most definitely there.”

For more information, contact Adrian Edlington – [email protected]

Savvy 2022 Savings Survey; n=1000

Nationally representative survey of 1000 adult Australians, aged 18 and over. Conducted by Octopus Group, on behalf of Savvy.

Completion date: 1/09/2022

Age groups:18-24, 25-34, 35-44, 45-54, 55-64, 65+

Gender breakdown: male n=501, female n=498, non-binary /prefer not to say n=1

Representative of state and territory populations:

NSW n=303 (32.3%), Vic n=240 (25.1%), Qld n=204 (20.2%), SA n=81 (7.2%), WA n=114 (10.6%) NT n=12 (0.7%), Tas n=25 (2.2%), ACT n=21 (1.7%)

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Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.

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