Australia's Workers Claim Larger Share of National Income Post-Pandemic

Breaking News: Australia's Workers Reap Greater Share of National Income A Westpac analysis has revealed that workers are now receiving a larger share of national income than before the pandemic, with a significant shift in the division of the economic pie. According to the report, workers are now taking home 55% of national income, surpassing the profit share for the first time. Timeline and Details The analysis, conducted by Westpac economist Pat Bustamante, shows that the tighter post-Covid labour market is behind this shift. The data indicates a steady increase in the labour share of national income from an average of 53.8% during the 2010s to over 55% now. This change translates to an additional $28 billion in workers' pockets over the past year alone. Immediate Impact and Response The Westpac analysis has sparked interest among economists and policymakers, who are closely monitoring the trend. The shift in national income distribution is seen as a significant development, particularly in light of Australia's economic recovery from the pandemic. Background Context Australia's labour market has been experiencing a period of tightening since the pandemic, with low unemployment rates and increased demand for skilled workers. This has led to higher wages growth and improved working conditions for many Australians. What Happens Next As the trend continues, policymakers will be watching closely to see if this shift in national income distribution is sustainable. The Westpac analysis suggests that a more equitable distribution of wealth could have long-term benefits for the economy and society as a whole. *This story is developing. Information compiled from Theguardian reporting.*