Productivity growth is an important contributor to economic growth, wealth creation, and higher living standards. At an economy-wide level, improvements in productivity allow more to be produced for any given level of inputs, which in turn generates additional income. For businesses, productivity growth provides the opportunity for improved profitability and competitiveness. For workers, improvements in productivity provide a mechanism for generating higher wages as productivity growth enables business to offset the impact of higher wages on profits. For consumers, productivity growth provides an opportunity for business to lower prices without compromising wages or profits.
This paper forms part of an ongoing series that examines Queensland's productivity performance. It builds on the Commission's 2016–17 update (QPC 2018) by including exploratory industry-level estimates of multi-factor productivity (MFP). It also includes a feature article that analyses the relationship between labour productivity and wages in Queensland.