Wage Growth

Wage growth measures the rate at which the average salary or wage increases over time for the typical worker.

Wages are central to economic health as they directly affect consumer spending, which drives economic growth.

It’s an indicator of economic prosperity, worker productivity, and labour market tightness.

Strong wage growth can enhance living standards and fuel economic expansion, while weak growth can stifle consumer spending and signal economic distress.

Recession Signal

There is no magic Recession signal on wage growth.

Stagnant or declining wage growth suggests economic trouble, as firms may be responding to decreased demand or preparing for a downturn.

So we look for a decline from a relative high on the charts, as showing some evidence of economic downturn.

Track this yourself

You can track wage growth easily on TradingView: https://www.tradingview.com/chart/v7ZG3yMA/?symbol=ECONOMICS%3AUSWG