Overview

• Australians logged record-long hours last year yet multi-factor productivity grew just 0.07%, signalling a deeper slump beyond overtime efforts.
• The Productivity Commission found hybrid work models to be neutral or positive for labour productivity, debunking links between remote work and output decline.
• A drop in care sector productivity accounted for 18% of the overall downturn as rapid staffing increases brought in many less experienced workers.
• Insufficient investment in technology, equipment and management practices has undermined gains from longer working hours and hampered efficiency.
• The commission has launched five targeted inquiries and the government is weighing policy reforms to boost capital investment and workforce skills.