Questions 3.1 Using a diagram, explain and illustrate the economic impact of this increase of 5.2% in the minimum wage rate on the Australian labour market. (Note: Your group must draw a diagram that shows the economic impact of this rate increase on the demand and supply curves of labour in Australia). 3.2 Assuming Australia’s inflation in 2022 rose by 5.1%, evaluate and explain the impact on real wages if Fair Work Commission made a different decision in 2022 and implement an increase in minimum wage rate of: (i) 3 percent (ii) 5.1 percent (iii) 5.5 percent
Before Fair Work Commission in Australia announced its formal decision to increase Australian minimum wage by 5.2 percent, the following prominent politician and peak bodies voiced their opinion on their desired increase for Australia’s minimum wage rate:
● In April 2022, the Australian Council of Trade Unions (ACTU) urged for an increase of 5.5 percent for minimum wage rate.
● In May 2022, the Australian Chamber of Commerce and Industry (ACCI) proposed an increase of 3 percent for minimum wage rate.
● In May 2022, current Prime Minister Anthony Albanese said during the federal election campaign he wanted the minimum wage increase to be 5.1 percent.
On 15 June 2022, Fair Work Commission in Australia announced its formal decision to increase Australian minimum wage by 5.2 percent.
Questions
3.1 Using a diagram, explain and illustrate the economic impact of this increase of 5.2% in the minimum wage rate on the Australian labour market. (Note: Your group must draw a diagram that shows the economic impact of this rate increase on the demand and supply
3.2 Assuming Australia’s inflation in 2022 rose by 5.1%, evaluate and explain the impact on real wages if Fair Work Commission made a different decision in 2022 and implement an increase in minimum wage rate of:
(i) 3 percent
(ii) 5.1 percent
(iii) 5.5 percent
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