Australia’s competitiveness on the line

Last week CEDA released the IMD?World Competitiveness Yearbook, where Australia’s place on the index improved several positions to see us ranked 19 out of 63 countries. It would be wrong however, to overlook some important warning signs within Australia’s latest results. Importantly, while our performance improved, that was off the back of a 25-year low in our ranking in last year’s index. The relative uptick in performance was buoyed by our strong terms of trade (driven by impressive iron ore prices) and our pandemic recovery – neither one of which can, or should be, taken for granted.?

Taking a longer-term perspective, the results are far from rosy. The fact is Australia continues to rate poorly in areas critical to our long-term competitiveness. These include areas like entrepreneurship, technology and productivity. How productive and innovative Australia and our businesses can be is critical to ensuring we manage the challenges and opportunities ahead and continue to grow our economy in a way that supports prosperity for all Australians.?

While there was a lot going on last week, with strong labour market data, wage increases and ongoing challenges in the energy sector, it would be remiss of me not to acknowledge The Queen's Birthday 2022 Honours List recipients. Congratulations to all, with a special call out from me to former CEDA Board member and South Australian State Advisory Council President Miriam Silva AM, who was recognised for her contribution to women and the multicultural community, and to my predecessor, Prof the Hon Stephen Paul Martin AO GAICD.?

Attend

Coming up in events over the next few weeks, we have another two state budget addresses, with?NSW Treasurer Matt Kean?this Wednesday 22 June. In Queensland we welcome Treasurer Cameron Dick?back to the stage for his third CEDA State Budget address on Monday 27 June.?

We’ll be discussing?mental health in the modern workplace?on Wednesday 29 June, looking at how to increase awareness, leadership and management capability, and why investing in workplace wellbeing is good for business.

Also next week on Thursday 30 June, we’ll be hosting the next instalment of our national hydrogen series, where we examine the investments, plans and projects to?develop a viable hydrogen industry?and renew Australia’s energy advantage.

Demand for CEDA's Public Policy Dynamics course continues to be strong. To support those looking to build their (or their team's) policy understanding and capabilities, we’ve confirmed new cohorts that are now open for enrolment. Sign up for the fully?online version?or for the hybrid delivery course in Sydney, Melbourne, Perth, Adelaide and Brisbane. Enrol by 30 June to take advantage of introductory pricing.?

And, finally, with tax time now approaching, don't forget to make your?donation?before 30 June 2022 to support CEDA’s forward research program of innovation, aged care workforce and immigration. Your tax-deductible gift will enable CEDA to continue our independent research and advocacy to influence government decisions and build long-term prosperity for all Australians.

In the Media

ABC | Fossil failure – Australia's energy crisis A pay rise is granted to Australia's lowest paid, with warnings it will fuel already rising inflation and send some businesses to the wall. But what is the evidence on the impact of such a pay rise and how can companies adapt? CEDA CEO Melinda Cilento spoke to Linda Mottram on ABC's?This Week?podcast about the current pressure on household budgets.

Australian Financial Review | Commonwealth and states failing on productivity targets “We cannot underestimate the time, effort and multitude of levers that it will take to sustainably lift productivity growth. Past periods demonstrate that a confluence of reform, technological transformation and investments in human capital underwrote sustained strong productivity growth,” Committee for Economic Development of Australia Chief Economist Jarrod Ball said.

ABC | National worker shortage extends from centre of biggest cities to most remote mountains Australia's labour shortage is the top issue for businesses – more pressing than energy prices, supply chains or a rise in the minimum wage, says CEDA Senior Economist Cassandra Winzar. "If we look back to, say, February 2020, just before the pandemic, there were only around 227,000 job vacancies," she said. "So we've seen a huge increase in just a couple of years".

Bloomberg | Australia Global Competitiveness Rank Climbs on Commodity Surge?CEDA CEO Melinda Cilento said Australian firms are far less digitally advanced than their global competitors while information technology is a much smaller contributor to the A$2.2 trillion ($1.6 trillion) economy than among advanced counterparts.?

Read

Stakeholder capitalism is on the rise. How do companies deliver??Society’s expectations of business are now at the same level as governments with respect to societal impact. 87 per cent of people believe companies exist to create value for broader stakeholders. Only 33 per cent believe CEOs are doing enough, writes Bruce Simpson, Senior Adviser on ESG to McKinsey and Company and Blackstone.?

The gap we’re not talking about In a period where employers everywhere are talking about our skills crisis and the challenges of finding workers, how is it that there is a group of Australians that remain significantly under-employed? One of the barriers to closing this gap has been the lack of data around Indigenous employment which can be then used to inform research, policy and initiatives, writes CEDA CEO Melinda Cilento.

Why Australia critically needs a productivity push?In the annual IMD World Competitiveness Yearbook released last week, our overall worst result was in entrepreneurship, where Australia is ranked 61 out of 63 countries. Australia also dropped from number 20 to 41 in terms of workplace productivity. When it comes to Australian business efficacy we rate poorly in terms of remuneration and compensation, international experience, employee training, skilled labour and working hours. It is little wonder, therefore, that our businesses are struggling to access the skills they need, writes CEDA CEO Melinda Cilento.

Proactive management needed for record infrastructure pipeline?The potential for Australia’s record infrastructure pipeline to address some of the country’s most pressing challenges is dependent on effective planning and proactive public sector management, writes Partners in Performance Director Mohamed Abdulahi.

Members:

CEDA is pleased to welcome?Woolworths Group?as our newest Lead member, joining our community of organisations who are leading the discussion on key areas of economic and social policy.?Thank you also to our renewing members over the past fortnight. Members' input and active involvement is integral to achieving CEDA's purpose of shaping long term prosperity for all Australians through informed debate that drives better policy solutions.?

LEAD: Aurecon; Serco

ELEVATE: ATCO; Australian Academy of Technology and Engineering; City of Gold Coast; City of Parramatta; Energy Queensland; Federal Chamber of Automotive Industries; Greater Western Water; Newmont Australia; Pilbara Ports Authority; Queensland Airports; Queensland Department of the Premier and Cabinet

DISCOVER: BankSA; Hender Consulting; Ndevr Environmental; Queensland Performing Arts Centre; VETASSESS; WA Department of Training and Workforce Development