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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.”
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