Australia’s productivity growth has reverted to the same stagnant pattern as before the pandemic, according to the Productivity Commission’s latest quarterly report.

Productivity is complex and often misunderstood in media and policy debates. So before we read too much into this latest data, here are six key things to understand about productivity.

The Carmichael Centre's Laurie Carmichael Distinguished Research Fellow Emeritus Professor David Peetz and researcher Charlie Joyce spoke recently at the 2024 National Manufacturing Summit in Brisbane on July 31.

Joyce and Peetz argued that with the global energy transition storming ahead - and driving an international boom in clean technology manufacturing - it is more important than ever that Australia act to reposition and restructure our economy to take full advantage of the industrial opportunities of the renewable energy revolution. 

The Albanese Government’s industrial policy framework – the Future Made in Australia Act (FMAA) – has finally been unveiled. A centrepiece of the 2024 budget, the FMAA seeks to realise the Labor government’s aspirations of making Australia a ‘renewable energy superpower’. It is expected to be a key pillar of their re-election strategy. The FMAA and its context must be understood by progressive campaigners to ensure it genuinely advances industrial development, decarbonisation, and the interests of workers.

On 1 July, an important change in the industrial relations landscape came into force. Industrial awards (‘modern awards’, as they’re now called), that set minimum standards in workplaces, will include guarantees of rights for workplace union delegates. All new enterprise agreements must also include such provisions.

This is a result of the first part of the Closing Loopholes Act. Part 1 passed the Parliament in December last year.

Three big things have happened with the passage of the second half of the ‘Closing Loopholes’ Bill through Federal Parliament on Monday.

One is world leading, one is not far from it, and one is playing catch up with the rest of the world. A fourth big thing happened a couple of months ago, with passage of the first half of the Bill.

Self-employment has changed in recent years. It’s been both shrinking and becoming more precarious. Proportionately, there are fewer business owners and there’s more gig work.

The reality is getting further away from what many have imagined.

Treasurer Jim Chalmers recently announced that the federal government’s much-anticipated package of climate industry policies will be delayed by at least another six months.

He cited concerns over skills shortages and environmental approval wait times before moving ahead with new measures to stimulate renewable energy and related industries in Australia.

The concerns raised by Mr Chalmers are real, and need attention. But the industrial opportunities of the net zero transition will not remain forever. Australia can’t wait for the perfect moment before responding to the rapidly changing global industry conditions – and in particular Joe Biden’s Inflation Reduction Act.

One of the most important aspects of the government’s Fair Work Amendment (Closing Loopholes) Bill is the detailed provisions covering gig workers. Those provisions account for 100 pages of the 284-page bill.

For the first time in decades, Australia is talking about industry policy. And the interest is coming from all sides.

At Labor’s recent national conference, the Electrical Trade Union (ETU) led a successful motion demanding the Commonwealth government invest big money to support domestic clean technology industries.

The Business Council of Australia (BCA) released last week a report that called for a reinvigorated government industry policy to develop advanced manufacturing and renewable sectors, among others.

Several landmark reports, including by the Centre for Future Work, have all reached the same conclusion: Government must invest big in industry policy to accelerate the clean energy transition and build Australian renewable industries.

Business, unions, and civil society are all singing from the same sheet. Clearly, something has changed – but why?

The surprising thing about the Albanese government’s announced reforms to “casual” employment is not that they’re happening. It’s that employer advocates are getting so excited about them, despite the small number of people they will affect and the small impact they will have.

That’s not to say the changes aren’t needed. Rather, true reform of the “casual” employment system, of which this is just a first but important step, has a lot further to go to resolve the “casual problem”.