Australian Bureau of Statistics figures released this month showed the national jobless rate dropped to 5.8 per cent in February, its best result since March last year. However, the 805,200 people out of work last month is still 109,500 higher than the same time in 2020.

Loading

In 2020 the Fair Work Commission panel that sets the minimum wage decided on an unusually low 1.75 per cent increase, but it was delayed for some industries that were struggling with the coronavirus, such as retail and tourism.

ACTU secretary Sally McManus said corporate profits had risen strongly during the pandemic, arguing workers should get a share and suggesting it would help spur on the recovery.

“Everyone suffers if wage growth doesn’t bounce back,” Ms McManus said. “If minimum wage workers do not have money to spend, local businesses feel it the most.”

The 3.5 per cent unions have called for this year is lower than last year when they asked for 4 per cent. Ms McManus said just over 60 per cent of people reliant on the minimum wage are women.

The South Australian Liberal government urged the same cautious approach as NSW while the Queensland Labor government said an increase above inflation was warranted. Victoria’s submission is yet to be released.

A panel established by the Fair Work Commission will decide the minimum wage in June and the rise usually comes into effect on July 1.