SA workers left behind as share of GDP hits lowest on record

September 07, 2022

South Australia’s economic performance continues to be robust, while workers continue to be left behind. 

Workers now have the lowest share of GDP on record at 44.1 per cent, according to today’s National Accounts data.

This is due to productivity growth continuing to outpace workers' wages. This comes as labour productivity grew by 2.1 per cent for the year to June, the highest level in a decade. Companies again posted record levels of profits.

Despite improved productivity, growth, profits and low unemployment, real wages have declined by -3.5 per cent for the year. This trend is set to worsen as inflation is predicted to hit 7.75 per cent by the end of the year and stronger wage growth is failing to materialise.

"A strong economy is of no use if hundreds of thousands of South Australians do not seethe benefit from it.”

“Workers are really struggling to make ends meet. Working people have the lowest share of GDP on record because their wages continue to be outpaced by productivity and profits.”

“Workers have built a strong and productive economy. Economists say that this should mean increases in wages and living standards. This isn't happening because the system is simply not working.”

“Wages aren’t going to magically lift on their own. If we want to turn the tide and help working people get ahead, governments need to take action to help wages rise. We need to give workers the standing to negotiate pay rises by reforming the bargaining system."