The vertical axis shows how much growth in income in a particular labour market varies from the average and the horizontal axis shows the unemployment rate in each of the local labour markets.
Graph 12  Employee Income Growth and Unemployment  Employee income growth* (deviation from overall average)  Based on 289 local labour markets for the period 1998/99–2017/18 ppt 1.5 Estimated relationship  1.0 0.5 0.0 -0.5 -1.0 -1.5 0  2  4 6 Unemployment rate  8  %  *  Average of all labour markets with a particular unemployment rate (to the nearest 0.1 ppt) in a given year; the size of each dot is proportional to the number of region-year observations at each level of unemployment Sources: ABS; National Skills Commission; RBA  These results suggest a clear relationship: the lower unemployment is, the higher is relative income growth.