Productivity growth is about harnessing our ingenuity to do more with the resources we already have — working smarter, not harder — and investing in the latest technology and the best ideas.

The Productivity Inquiry focuses on the enablers of productivity growth in a modern, market-based, service-oriented world. This sixth and last interim report explores how a well-functioning labour market is critical to productivity growth and social wellbeing.

Key points:

• A well-functioning labour market is a critical contributor to productivity growth, particularly through the matching of jobs and people with appropriate skills and know-how.
• Shifting Australia’s skilled migration system away from one that relies heavily on restrictive skill shortage lists, and towards a system that better enables employer-sponsored skilled migration, could better support productivity growth.
• Improving recognition of qualifications and scope of practice can promote efficient utilisation of scarce skills.