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CPD Says Australian Workers Miss Out on Productivity Gains

Research presented by Warwick Smith and Adelajda Soltysik from the Centre for Policy Development at the Economic Society of Australia annual conference earlier this month found typical worker pay has failed to keep pace with productivity growth over the past 30 years.
Economist Jim Stanford argues that "The fruits of productivity growth have been disproportionately captured in the form of business profits, dividend payouts, and executive compensation," rather than flowing to workers as higher wages.
Research from the Australia Institute, supported by The OECD data led by Coalition Finance Minister Mathias Cormann, shows excessive corporate profits drove post-Covid inflation as businesses raised prices by more than cost increases.
The OECD reports that real wages in Australia have fallen by around 5 per cent since 2021, marking one of the sharpest declines among advanced economies as income growth remained flat over the past decade.
AUKUS spending has already cost $6.6 billion, while broader concerns exist regarding climate change's impact on agriculture productivity; Australia's productivity debate remains narrow, dominated by the Productivity Commission's focus on tax cuts.

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