As wages rise faster than prices, giving households more spending power, businesses are urged to boost productivity.
Average weekly ordinary time earnings for full-time adults hit $2010 in May 2025, which was 4.5% higher than the year before, and significantly more than the 2.1% annual inflation rate recorded in the June quarter.
However, Australian Industry Group CEO Innes Willox stressed that productivity needed to improve if real wages growth was to remain sustainable. He warned that without productivity gains, higher wages will simply feed inflation and erode workers’ purchasing power.
Five ways to make your business more productive:
- Embrace technology. Automating routine tasks can save time and reduce errors.
- Streamline processes. Regularly review workflows to cut out unnecessary steps.
- Invest in staff training. A skilled workforce is more efficient and adaptable.
- Set clear goals. Well-defined targets help teams stay focused and accountable.
- Monitor performance. Use data and feedback to track progress and identify improvements.