Unions say a more diverse economy is needed to boost productivity

Australian Unions are arguing for the need to speed up diversifying our economy.

They are pointing to Australia’s chronic lack of corporate investment in research, development and innovation having led us to being one of the least complex economies in the developed world. 

Australia is ranked 105^th in the world for economic complexity below Botswana and Panama.

Union concerns include Australia:

• Being over-reliant on digging and shipping our natural resources. Businesses failing to invest in adding value here by creating advanced manufacturing jobs.
• Having relatively low rates of women’s workforce participation and highly gender segmented jobs and industries compared to other similar developed countries.
• Declining business investment in capital, technology, research and development while profits have been rising.
• Having the urgent need for a fast and fair transition to renewable energy held up by complex, slow, overlapping approval processes.
• Being under-invested in the foundational economy. The quality of our health, education, social services and housing.

Australian Unions are calling for a faster and fairer transition towards a net zero economy, backed by an accelerated development approvals system to greenlight more renewable energy projects. 

Unions will go into next month’s Economic Reform Roundtable advocating for a new national approvals system for renewable energy and transmission projects to get them faster to a clear ‘yes’ or ‘no’ decision and ensure workers and communities get their fair share of benefits.

Unions are also arguing for new production tax incentives for green iron and green alumina projects, more R&D support for Future Made in Australia industries and a network of regional industrial innovation precincts.

Unions are also calling for industries to break open women’s access to traditionally male-dominated sectors and for universal free high quality childcare as moves necessary to boost women’s workforce participation.

They want to see increased investment in access to and the quality of our health, education, social services and housing systems.

Quotes attributable to ACTU President, Michele O’Neil: 

“This is about what we do as a nation, who does it and who gets to share the benefits.

“Australian Unions want to see living standards rise for everyone and increasing productivity growth through diversifying our economy will help achieve this, if we ensure the gains are shared fairly. 

“Productivity will improve through investing in people, research, innovation, skills and technology. 

“The Government’s Future Made in Australia and net zero commitments provide a huge opportunity to take advantage of our highly skilled workforce, and Australia’s natural resources and advantages.

“A faster, fairer path towards a net zero economy, including an improved development approvals process and new production tax credits for green iron and green alumina projects can take us a long way down the road. 

“By diversifying our economy, we will do more than just dig things up and ship them off. We’ll be able to turbocharge our advanced manufacturing sector, creating good quality jobs and lifting research, development and innovation.

“We can drive growth and productivity by unblocking the barriers holding women back from full participation in the workplace in our heavily gender-segregated jobs and industries, including by the introduction of universal free high quality early childhood education and care.

“Also key to good living standards is a strong foundational economy, which requires investment in accessible and good quality health, education, social services and housing.”