TABLE OF CONTENTS EXECUTIVE SUMMARY 1. INTRODUCTION 2. PRODUCTION GROWTH ISSUES 3. PRODUCTION PERFORMANCE IN THE LAST DECADE 3.1 MINING 3.2 UTILITIES 3.3 INVESTMESNT 4. THE DECLINE IN PRODUCTIVITY 4.1 GROWTH IN THE LAST DECADE 4.2 TECHNOLOGY 4.3 INNOVATION 4.4 EDUCATION 5. CONCLUSION, RECCOMMENDATION & IMPLEMENTATION BIBLIOGRAPHY APPENDIX
A decline in productivity in Australia over the last decade
Australia’s Productivity growth has been on a steady decline over the past decade. Part of Australia’s productivity prosperity is not assured. While the mining sector is expected to continues to thrive for the foreseeable future, many other sectors as well struggling to improve upon the productivity growth in Australia. In the report I highlighted the alternate source for the decline in productivity which has resulted in no real answers as to what is best way forward. Despite being a simple concepts there is no unique measure of productivity growth being the three most important the demographic, economic and social which are faced over the decade, nevertheless the decline over the last decade broadly in line with the productivity performance. The labour productivity growth over the period of 1989 -90 to 2002 -03 had an average of around 2.0 per cent but slowed to around 0.7 per cent in the subsequent period to 2008-09. The multifactor productivity performance growth in the last decade has been most the mining, utilities industries and investment where most of the slowdown in Australia’s productivity performance is concentrated. The agriculture, forestry and fishing sectors accounts for almost 80 per cent of the decline in Multifactor production growth between 1998-99 and 2007 -08. However the decline in productivity in the mining and utilities industries account for an important part of the slowdown in accumulated market sector productivity growth between the 1990s and hindmost part of the 2000s. The growth in labour productivity has been dragged down by weaker multifactor productivity growth. Although Australia’s economic performance during the 2000s has been impressive on many dimensions, especially compared with other advanced economies, productivity is not among them. The consequences of this poor productivity performance have not, become widely apparent masked by a combination of faster population growth (until recently) and most sustained upswing in Australia’s terms of trade in over a century. In conclusion the sustainability in the higher productivity and faster productivity should provide an ongoing improvement in the standard of living and the quality of life. The growth in productivity will determine the growth in real income progressing to a sustained change in the term of trade that real income growth per hours work can divagate from productivity growth for a period of time. A decline in productivity in Australia over the last decade Page 2
(Eslaske, 15th August, 2011) Productivity is the simplest measure of how effectively or efficiently a work place, a business or a government agency. The definition and measurement of productivity have been the topic of research for a variety of disciplines, including accountancy, economics, engineering and operation research. A region or a nation as a whole uses the resource at its disposal to produce goods and services which are in turn valve in the economic growth, in some way by those who consume or use them. At the level of individual workplaces or firms, productivity measure are often expressed in terms of output per unit of a single factor of production, such as land or livestock, some measure of labour input such as a person-hours. At economy-wide levels, productivity is usually expressed as a measure of value added either per unit of labour input or per unit of labour and capital services inputs. While, conceivably, other factors of production could be...