RBA’s Ellis Says Weak Household Income Explains Jobs-GDP Puzzle

Australia’s households have been hit by a double-whammy of sluggish wages growth and weakness in other sources of income, a senior central bank official said.

In a speech to a housing industry conference in Sydney Tuesday, Reserve Bank Assistant Governor Luci Ellis said “a confluence of factors” has seen weakness in income outside of wages from labor. That’s helped explain a disconnect between the nation’s robust jobs market and slowing economy, she said.