Low wage growth not unique to Australia

The International Monetary Fund says productivity must lift if wages growth is to pick up among advanced economies.

Australia is not alone suffering low wages growth.

The International Monetary Fund says most advanced economies are in the same position with wage increases markedly lower than before the 2008-2009 global financial crisis.

In the analytical chapters of its forthcoming, twice-yearly economic outlook, the IMF says a bulk of the wage slowdown can be explained by slack in the respective labour markets, low inflation expectations and modest productivity growth.

The Washington-based institution says while part-time employment has helped support labour force participation, it also appears to have weakened wage growth.

It says accommodative policies, like low interest rates, can help lift demand and lower headline unemployment rates.

However, wage growth may continue to remain subdued until involuntary part-time employment diminishes or productivity growth picks up.

"Inflation rates will also likely remain low unless wage growth accelerates beyond productivity growth in a sustained manner, " the IMF says.