Australian Productivity Commission Chair calls for reforms

The Chair of Australia’s Productivity Commission, Danielle Wood, has declared the urgent need to address labor productivity growth, which has fallen to its lowest level in 60 years. She emphasized that current conditions demand measures to optimize workforce utilization, technologies, and the nation's natural resource management.

An analysis of the past decade data reveals a troubling trend: despite 25% overall economic growth, GDP per capita rose by just 7.7%. As Bloomberg economist James McIntyre says, this gap reflects weak labor productivity rise. Previously, the economy compensated for this deficiency by increasing the population size, extending working hours, and maintaining high energy prices. However, under the current US trade policy, these factors can no longer serve as a basis for sustainable development.

Danielle Wood emphasizes the need for reforms in 15 areas, including taxation and energy infrastructure. As Bloomberg notes, restoring productivity growth is key to maintaining living standards and securing long-term economic growth.