Australian productivity falls, despite record long hours being worked

30 May 2025

Bronwyn Herbert, writing for the Australian Broadcasting Corporation (ABC):

Australians have been working record-long hours, which contributed to the productivity slump, the Productivity Commission report found. Those additional hours performed by workers have not been matched by business investment in systems and technologies that would allow them to work efficiently, according to the report.

In some sectors the apparent decline in workplace productivity can be attributed to a lack of investment in new technologies, including AI. But that’s only part of the problem, and workers also need to be upskilled, if productivity rates are to rise.

I imagine it will be of comfort to some people that upskilling workers is being suggested, by employer advocates no less. This as opposed to the idea that much greater use of AI be made to somehow pickup the shortfall in productivity.