Generation Y workers expect their salaries to leap by almost 10 percent over the next year, despite ongoing weakness in the job market, new research has shown.

The wage expectations of young Gen Y workers – those aged between 18-24 – by far outstrips their older colleagues, who on average expect 2.9 percent pay growth.

The Melbourne Institute Wage report also revealed that those aged 50 years and above are the gloomiest group, with expectations of a meagre 1 percent pay rise over the next 12 months.

Meanwhile, around 8 percent of all Australians foresee a fall in their annual salaries, while 34 percent expect their net pay to stay frozen for the next year.

Back in August, the average worker expected a pay rise of 4 percent over the next year. However, that has now fallen back to 2.9 percent, despite two straight months of growth in the job market.

Source: ninemsn money

Total pay and basic hourly wages have remained static, according Dr Edda Claus at the Melbourne Institute, suggesting that overtime pay and bonuses were low.

"Outcomes for total pay and hourly wage rates suggest that labour market conditions remain soft", Dr Claus said.

"Overtime and penalty rates were only a minor source of pay rises over the past 12 months. This is consistent with the rise in under-employment over this past downturn."

The Melbourne Institute said that plant and machine operators, alongside labourers have suffered the worst pay growth in the last year as a reflection of the weak labour market.

Lower skilled workers slipped into unemployment ahead of their skilled counterparts, as is consistent in economic downturns, Dr Claus said.

Full-time workers enjoyed faster pay rises than part-time workers, as did women, who saw their pay rise more quickly than their male colleagues.

Despite the jittery job market, Australia\'s workforce added 60,000 jobs over September and October, leading many economists to predict that the jobless rate will peak at 6 percent – from its current 5.8 percent.