Mountains to climb. Productivity, inflation, interest rates, higher wages, squeezed margins and fractured confidence. There is no single, simple, easy fix to this conundrum. Australian businesses, families, individuals and governments will need to do some hard yards if we are to improve our standards and quality of life in the immediate and near future.
MEASURED APPROACH
Productivity growth in Australia currently sits at around 0.8%. Inflation is at 4%, unemployment at 4.1%, official interest rates at 4.10%, and GDP (Gross Domestic Product) is on a slow incline from 1.3% to 2.6% by June 2026.
It is not a great performance report card. We are slipping behind slowly and comprehensively.
Most disturbing is the growth and, therefore, reliance on government expenditures and contributions to GDP. Traditionally, it has been below 25%. At present, it is some 27.6%.
Expectations of and dependence on increased government fiscal initiatives do not necessarily result in increased productivity. Indeed, it may well be the reverse.
MORE FOR LESS
You’re on your own. It’s a sobering realisation and one which must be embraced immediately.
Producing more from the same inputs, or preferably less, are the overriding needs, goals and priorities for Australian society, the economy and the marketplace.
And if that means accelerating the introduction of Artificial Intelligence (AI), so be it.
Increases in union-negotiated or insisted wage rates (which exceed the consumer price index and official interest rates), peaking among public servants, are a false economy without commensurate, consistent productivity hikes.
Evaluations also need to be undertaken on concepts such as WFM (work from home), ESG (environmental, social, and governance), and DEI (diversity, equity, and inclusion). They, too, need to contribute to sustainable improvements in productivity. Everything comes at a cost. Many can’t and aren’t being justified.
If necessary, refine them. That can be productive.
MAKE A DIFFERENCE
For those who aspire to make a difference or are recruited on that premise, a key measure is productivity.
Trimming costs and saving money are laudable, but, to some extent, meaningless if there are no tangible, quantifiable, and verifiable improvements in productivity. So go ahead, economise if that is a contributor to your optimisation.
TOPLINE AGENDA ITEM
Foremost, productivity needs to be a top priority in business planning, management retreats, and staff training sessions.
Pushing the envelope has never previously been the norm. It is now.
Ubiquitous, universal question:
Will it improve productivity?
by Barry Urquhart – (c) 2026.
Read Time: 5 minutes.
About the Author.
Barry Urquhart is a highly regarded market research and strategic planning consultant, recognised throughout Australasia for his insight, clarity, and thought leadership. A seasoned keynote speaker at premier conferences, Barry is also the acclaimed author of Serves You Right! And Service Please!, two of the region’s top-selling titles on customer service excellence.
Respected as a trusted voice in business strategy, Barry continues to lead influential workshops and development programs that help organisations drive sustainable growth, elevate service culture, and achieve competitive distinction.
For Media Enquiries or Speaking Engagements:
Email: [email protected]
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