The Australian Council of Trade Unions (ACTU) has projected that a $50 per week wage increase to the Australian minimum wage will create up to 57,000 jobs in a year, it said in a release today.
According to the Fair Work Commission submission, between 40,000 and 57,000 full-time equivalent jobs would be created in the first year, with an additional 27,000 to 30,000 to follow in the second year.
These numbers were based on two methodologies used by the ACTU as part of its push to increase the minimum wage for low income earners. “When people on lower wages get a pay rise they spend it in the local economy, and that creates more jobs,” said ACTU secretary Sally McManus.
“Australia needs a pay rise, and we need more secure jobs.”
One of the projections gathered information about the households of those living on low incomes, while the second used Treasury assumptions to calculate the effects of a wage increase.
Employers are pushing against the change, arguing it would threaten the job security of those in lower-paying jobs.
“The Turnbull Government and the business lobby are trying to keep wages down by running a scare campaign against higher wages,” McManus said. “That’s the same discredited, untruthful, damaging trickle-down economics this government loves to roll out.”
“The truth is that pay rises will create jobs and move our economy forward.”
This is the ACTU’s biggest campaign since the Your Rights At Work movement back in 2007, so here’s hoping the right thing is done by workers and wages go up.Image: Office Space