KPMG’s experts detail Australia’s productivity status and where attention needs to be directed to improve it.
KPMG’s experts detail Australia’s productivity status.
Productivity is vital to the economic growth and future of Australia, but after years of stagnation it will take a myriad of approaches to ensure its growth.
In the world’s most advanced countries, productivity growth has slowed to such an extent over recent years that genuine fears are being held that the developed world has entered an era of long-term economic stagnation.
In Australia, the best measure of productivity – multifactor productivity – which reflects the skill and cleverness with which capital and labour are combined to produce a given amount of output – is lower now than it was more than 10 years ago. Productivity growth will need to do almost all the heavy lifting to ensure living standards remain high for an ageing population.
There is no one solution to a more productive Australia. Rather, a layered approach of improving education, competition, infrastructure, workplace relations and innovation is essential.
Detailed information and recommendations from KPMG experts are contained in our series of reports.
KPMG Economics investigates the role of capital and labour in driving economic growth in Australia.