Australia’s sluggish wage growth is predicted to continue into 2018, but economists say there is light at the end of the tunnel.

The Federal Government says its corporate tax reform will see wages rise, and Prime Minister Malcolm Turnbull predicts some relief is in sight as the demand for labour grows.

But economist Saul Eslake told Neil Mitchell it was time to look at wages policy, including minimum wage.

He said the best indicators for growth were movements overseas.

“I think the evidence from countries overseas whose experience has been similar to Australia’s with very low growth in wages but for much longer is that when the labour market is tight enough for long enough, wages will start to move.”

“I think it will be at least a year until wages growth picks up.”

Click PLAY to hear the full interview on 3AW Mornings