Workplace Research Centre
Raising productivity in an era of
sustainable practice
Presentation to
‘Strategies for the Future’
National Industry Skills Councils Conference
Canberra
1 June 2010
John Buchanan
Workplace Research Centre
Introduction

How has productivity changed lately?

How can workforce development help?

Structure of today
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Productivity
-
World trends (output per hours worked)
-
Australian trends
-
Multi-factor productivity (overall efficiency)
Labour productivity (the human contribution)
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Productivity- indicative world trends1
GDP per hour worked,
Annual productivity
2007 US=100
growth rate 2000-2007
US
Germany
Japan
100
95
71
2.0
1.4
1.9
UK
Canada
Australia
89
86
82
2.3
1.1
1.6
Norway
Ireland
Greece
135
92
71
1.8
2.5
3.1
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Multi-factor productivity growth Australia2
Cycle
MFP Rate %
1964/65 – 1968/69
1968/69 – 1973/74
1973/74 – 1981/82
1981/82 – 1984/85
1984/85 – 1988/89
1988/89 – 1993/94
1993/94 – 1998/99
1998/99 – 2003/2004
2003/2004 – 2007/08
1.3
1.6
1.1
0.8
1.0
2.3
1.1
1.1
-0.3
Workplace Research Centre
Wage and labour productivity: Australia 1978 - 20083
200
Index: 1978:3 = 100
180
160
140
120
100
80
1980
1985
1990
1995
2000
Real wage
Labour productivty (market sector)
2005
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Wages share of GDP: 1978 - 20083
64
Per cent of GDP
62
60
58
56
54
52
1980
1985
1990
1995
2000
Total wages as a % GDP
2005
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The workforce development challenge:
rethinking labour supply and demand

Labour supply (people in transition)

Labour demand (jobs in transition)
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Working life: key transitions4
PRIVATE
HOUSEHOLDS
EDUCATION
SYSTEM
LABOUR
MARKET
UNEMPLOYMENT
RETIREMENT
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2. Analysis: Labour and Workforce Development5

Labour potential  challenge 1: development

On-the-job realisation  challenge 2: deployment

Systems of workforce development (skills ecosystem)


Embodies blends of development and deployment
Embedded in dynamics of labour market segmentation + macro
flows of production and consumption
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Guide to the day



Reflecting on new directions
Showcasing new initiatives
Moving the beyond the ‘there is no
alternative’ mindset of the last 30 years
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References
1.
2.
3.
4.
5.
L Mishel, J Bernstein and H Shierholz, The State of working America, Cornell
Uni Press, Ithaca: 361
Australian Parliament, Inquiry into the level of productivity growth in the
Australian economy, 28 April, 2010 (and Quiggin, J (2006), ‘Stories about
Productivity’, Australian Bulletin of Labour, Vol 32, no 1 2006, pages 18 – 26.
See also http://www.pc.au/research/productivity/estimates- trends/recentmovements.
Material from ABS, A System of National Accounts, 2007 -08. Graph initially
prepared by Bill Mitchell and reproduced by Serena Yu
G Schmid’s notion of Transitional Labour Markets is summarised in ACIRRT,
Australia at work: Just managaing?, Prentice Hall, Sydney, 1999
These ideas about workforce development are summarised, for example, in I
Watson et al, Fragmented Futures: new challenges in working life, Federation
Press, Sydney, 2003: Chapter 10.