A recent survey has revealed some surprising results for Australian professionals. Aussies may need to continue being cautious with their finances, as their employers are likely to refrain from giving pay raises in the face of inflationary pressures. A survey carried out by Robert Walters, a recruitment agency based in Sydney, showed that 58 percent of employers do not plan to offer any pay raises that exceed the current inflation rate, which is approximately 5 percent.
The survey also discovered that business development managers reported a 2 percent average pay increase, while project managers in natural resources and engineering experienced a 3.7 percent bump. Conversely, financial accountants in wealth management received an eye-popping 35.71 percent salary increase, raising their average salaries from $160,000 to $220,000. Tech workers also fared well, with test analysts reporting a 16.82 percent pay rise and supply chain managers reporting a 15.15 percent jump.
According to Andrew Hanson, the managing director of Robert Walters, the growth in tech salaries was unsustainable and was likely to plateau. He attributed the initial boost in tech salaries to strong demand for certain skill sets, which forced employers to pay more. He also mentioned that the current economic downturn was contributing to stagnant wage growth in sales jobs.
The fear of stagflation is starting to become a reality, as unemployment is on the rise in line with inflation. This has led to some major layoffs by large firms, with Ernst & Young letting go of 232 employees, PricewaterhouseCoopers cutting 338 jobs, KPMG laying off 100 staff, and several Australian banks axing over 1,000 employees. This has created a situation where people are discouraged from saving money, as inflation continues to outstrip the current interest rates offered by banks.
Former RBA Governor Phillip Lowe has expressed concerns about the dangers of low interest rates not rising high enough to combat inflation. He warned that if wages remain too stable relative to low productivity, there could be further inflationary risks. Overall, the survey suggests that Australian professionals will need to navigate a challenging economic landscape in the coming years.