Needed next: productivity magic

Just in to the heroic assumptions desk

Yesterday’s 2021 InterGeneration Report assumes labour productivity will meet the 1.5 per cent per annum increase over the last 30 years. Problem is, as the report recognises, it was but 1.2 per cent through the last complete cycle in the 2010s.

Not to worry, Treasury knows how to fix this, “government policies can assist in lifting productivity, including by helping individuals and businesses take advantage of new innovations and technologies.” Gosh, now who else would have thought of that.

But pray, how is it be done? “As technology continues to reshape tasks and occupations, ‘lifelong learning’ and continual re-skilling will be needed to ensure people have the skills to take advantage of new processes, jobs and occupations driven by technological change,” Treasury states

It’s a good thing all this will happen as if by magic – because as sub-par productivity growth demonstrates, nothing governments have done for decades has delivered.