Australia’s drop in real wages is a disaster. But the profits of major corporations are doing just fine | Grogonomics

Wages are not growing out of control and the labour market is not ‘tight’

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Excuse me while I sadly cross off another three months on my “waiting for a wages breakout” calendar.

Before I get to the wages figures, may I pause to note that this month https://www.marketindex.com.au/news/nab-profit-rises-but-mortgage-slump-and-cautious-guidance-send-shares-tumbling">NAB reported a 5% increase in its profits compared with last year, https://www.commbank.com.au/content/dam/commbank-assets/investors/2026/CBA-2026-Full-Year-Results-ASX-Announcement.pdf">CBA reported a 7% increase in its cash profit, https://www.afr.com/companies/mining/soaring-copper-prices-turn-into-bumper-bhp-payday-as-profits-lift-9pc-20260817-p60p1y">BHP reported annual profit growth of 9% and https://www.proactiveinvestors.com/companies/news/1096179/rio-tinto-shares-surge-as-copper-growth-drives-profit-and-dividend-beat-1096179.html">Rio Tinto recorded a 47% profit increase in the first half of this year.