The economy is in Goldilocks mode for business — productivity up and wages growth down. But what happens when unemployment falls to very low levels?
For the past few years under the Coalition, Australia’s economy has had poor labour productivity growth.
The big lift in productivity that occurred under the Rudd-Gillard governments disappeared in 2015, when measures like GDP per hours worked began turning negative on a regular basis, reducing the rate of overall labour productivity growth back to the levels seen when John Howard was in office.
But in the 12 months to March there’s been a better result.
What’s the damage if unemployment falls to the 4s, or even less? Read on to find out.
Already a subscriber? Log in to keep reading.
Or, register your email address for a FREE 21-day trial.
