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Wages hurt by non-compete work contracts

John Kehoe
John KehoeEconomics editor

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The Albanese government has seized on new research showing workers bound by non-compete clauses are paid 4 per cent less on average than staff who can switch jobs easier, as it considers a crackdown on the employment restrictions.

Wage suppression was worse among lower skilled workers bound by non-compete clauses, who earned about 10 per cent less after five years, despite starting on a similar wage earlier in their career to those not limited in this way, according to the analysis from the non-partisan e61 think tank.

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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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    Original URL: https://www.afr.com/policy/economy/wages-hurt-by-non-compete-work-contracts-20241013-p5khuv