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Just saw a topic about pay raise on Oursteps and want to share my opinion about getting a pay raise.
It has been on the news in the past two years that the wage growth has been frustratingly slow for quite a few years in Australia or even globally.
In Australia, we have not had a recession for 27 consecutive years, the budget is now in surplus and the unemployment rate is low. But the wages are not growing.
In the US, the unemployment rate has been at or below 4.5% for 16 straight months, the stock market just had a strong rally recently, which indicates that the US corporates have a bright prospects in the near future, neither has translated to strong wage growth.
A variety of explanations have been proposed for this unusual economical phenomenon.
A traditional view is that the productivity growth rate has been relatively slow. In economics, the increased productivity leads to wage increase. When the productivity is not improving, neither will the wages. This argument make sense to me.
Another view is that the inflation is relatively low and for some, the pay raise is pegged to the inflation. This proposition is somewhat problematic. If low inflation leads to low wage growth, and then low wage growth will again lead to low inflation, how do you break the cycle?
I am not an economist (even they can’t come up with uniformed explanations as to why wages growth has been sluggish) and I have no interest in explaining why something has happened to the public at large.
For me, I am much more interested in how I can improve my earning capabilities.
In my opinion, the only way you can dramatically increase your earnings is to continuously improve your knowledge and skills and then by changing jobs to be able to show and use your newly gained knowledge and skills.
As a Chinese saying goes, frequent shifts make a tree dying but a man prospering, good luck and best wishes to everyone who is currently actively looking for a new position.
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