16
Aug
2011

Productivity – the lost decade

by


Saul Eslake

Australian workers increased their productivity far less in the past decade than in the previous one. They are also increasingly less productive than workers in most comparable countries. Since rising productivity is vital to a strong economy, the problem is serious, even if its consequences are not yet visible. Until recently the official account held that large investments in mining and utilities, and the lag time before they took effect, was driving declining productivity growth, but Grattan Institute research has shown that most industries are suffering the problem.