Invest
2 overlooked ways to kickstart Australia’s economy
Following the first recession in nearly three decades, Australia is missing two key opportunities to kickstart the economy, according to a study.
2 overlooked ways to kickstart Australia’s economy
Following the first recession in nearly three decades, Australia is missing two key opportunities to kickstart the economy, according to a study.

New analysis by the University of Sydney has found that Australia should invest in social infrastructure such as education, health and care, as well as give greater subsidies for early childhood education.
The University of Sydney’s associate professor Elizabeth Hill believes these two policies would boost employment and improve gender inequalities that have disproportionately impacted women since the downturn began.
“Women’s employment has been hardest hit, contracting by 7.4 percent between February and May 2020, compared with 5.6 percent for men. This equates to 457,000 jobs lost by women,” associate professor Hill said.
“This is only expected to continue as policies are targeted at male-dominated industries, including the construction sector as part of the government’s plans to restart economy.

“We expect this pattern to deepen amid the prolonged economic downturn. Implementing policies that address circumstances predominantly faced by women will therefore benefit the economy at large.”
Associate Professor Hill highlighted that while many large-scale infrastructure projects have traditionally been used to stimulate the economy, these tend to have a male bias.
“For example, a study of seven OECD countries shows that public investment equal to 1 per cent of GDP in labour-intensive care industries generates more total employment than investment in construction. If applied to the Australian market, it is estimated that this employment ratio would be nearly five to one,” she said.
“This is not to suggest that stimulus should not be made in construction, only that the government should take a more balanced approach to fiscal policy.”
The academic pointed to the success of the affordable early childhood education and care (ECEC), which the government introduced in April before prematurely ending it in July.
“There is particular concern that where the out-of-pocket cost of ECEC for families facing unemployment or significant economic insecurity remains high, it will be women who forgo employment and undertake child and other care duties.”
“Results from initial surveys by the sector confirm this possibility and suggest current ECEC policy will not support a dynamic and gender-inclusive economic recovery,” she said.
Associate Professor Hill said greater investment in ECEC is a “triple-win” strategy that will:
- generate billions of dollars in national wealth and boost GDP while supporting women’s employment;
- increase demand for the sector’s services, creating more jobs; and
- allow for universal access, promoting all children’s education, wellbeing and life chances.
About the author

About the author


Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more

Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more