Despite Worker Shortages, Businesses Aren’t Offering Wage Increases

A passer-by looks through a window at a man working on a construction site in Melbourne, Australia on July 2, 2019. William West/AFP via Getty Images

Companies faced with skilled labour shortages are not giving wage increases but are instead offering one-off bonuses or more flexible work arrangements, the Reserve Bank of Australia (RBA) said.

In the June policy meeting minutes, the RBA said some companies were also choosing to “ration output” rather than pay higher wages to attract new workers.