Workers are unlikely to see substantial pay rises in 2020 as unemployment remains stubbornly stuck above 5 per cent and confidence in the economy continues to diminish, challenging the Morrison government as it begins work on the May budget.

The Deloitte Access Economics Business Outlook, released on Monday, forecasts global economic growth is unlikely to get much worse as phase one of a trade deal between the US and China spurs global markets, while Australia gets locked into a slow growth pattern for the forseeable future.

"We don’t expect unemployment to drop or wages to accelerate through 2020: we’ll be comfortably treading water rather than roaring into recovery," said the report's author and former Treasury official, Chris Richardson.

Workers are unlikely to see pay rises this year, according to Deloitte Access Economics. Credit:Glenn Hunt

The report warns that a third threat has joined the dual demons of drought and housing-related negatives - "cratered confidence among consumers and business".