Australians are getting poorer and a leading economist has produced a striking graph to explain the fall-off in living standards.
AMP chief economist Shane Oliver, in a post to X from Friday, shows off a graph displaying annual changes in labour productivity across several advanced economies.
Australia sits at the bottom of the group, registering a negative change in productivity, compared to a nearly 5 per cent growth rate in the US and 2 per cent growth in Norway.
“Australian labour productivity growth running at the bottom of the OECD … it’s the basic reason why living standards are falling in Australia,” Mr Oliver writes.
Labour productivity refers to the amount of goods produced by a worker in a set amount of time.
Higher or improving productivity means a worker produces more in less time.
It is a key indicator for living standards because greater productivity is often tied to …