From www.rossgittins.com: Australia’s productivity has stagnated for about a decade, primarily due to a lack of investment by businesses in machinery and equipment needed to enhance worker efficiency.

Economists and business leaders have historically pointed to government policies as the main culprit for poor productivity, but recent analyses reveal that private sector inaction is the real issue, as firms have opted to cut costs through practices such as casualisation rather than investing in productivity improvements.

Economists argue that both physical and public capital investments are essential to support a growing workforce and enhance overall productivity.