From www.rossgittins.com: Australia’s productivity has stagnated for over a decade because businesses have not invested adequately in labour-saving capital, leading to a decline in the capital-to-labour ratio.

Despite high immigration, the lack of corresponding investments in infrastructure and equipment means that productivity improvements have been insufficient, causing living standards to stagnate.

The Reserve Bank and the Productivity Commission call for businesses to refocus on enhancing productivity rather than relying on labour cost-cutting strategies.