Invest
How to boost the economy by $207 billion
Boosting the number of women, younger people and older Australians in the workforce would potentially generate an extra $207 billion for the Australian economy, or an increase of 12 per cent of GDP, new analysis has found.
How to boost the economy by $207 billion
Boosting the number of women, younger people and older Australians in the workforce would potentially generate an extra $207 billion for the Australian economy, or an increase of 12 per cent of GDP, new analysis has found.
According to consultancy firm PwC’s Labour Market Performance Index, three-quarters of working age Australians are employed. However, Australia ranks 14th out of 35 OECD countries.
Improving workforce participation into one of the top OECD countries would have a tangible impact on Australia’s economic growth, PwC said.
According to ABS data, Australia’s seasonally adjusted unemployment rate is 5.3 per cent, which is down from a 6.4 per cent peak.
PwC chief economist Jeremy Thorpe said: “Although we have seen improved labour market participation in recent years, we cannot afford to be complacent in assisting these groups to secure jobs.
“There is a real issue, particularly with youth underemployment, that we need to address. When looking at the performance of other countries, Australia is far from best practice when it comes to having an inclusive workforce.
The analysis also looked at the long-term boost to gross domestic product (GDP) from improving our labour market performance, as measured by the index. Sweden, which performed strongly across all three indices, was used as a benchmark country to compare and estimate Australia’s GDP boost.
“Realising the potential economic gains from greater participation will need a mix of policies to overcome discrimination in the workplace, boost vocational training, including retraining for all age groups, and improve childcare and flexible working arrangements.
“Successive Australian governments have certainly made progress over the last two decades, but our analysis suggests more needs to be done for Australia to match international best practice and drive economic growth.”
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...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
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...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
