Australia is a public sector economy

Australia’s economy has become overly reliant on public sector spending (not to mention high immigration) to grow the economy.

Consider the following facts. Since the COVID-19 pandemic began, around 60% of Australia’s job growth has come from the non-market (effectively government-funded) sector of public administration and safety, education, healthcare, and social assistance.

Over the past two years, just over 80% of job creation has come from the non-market sector, much of this related to the NDIS.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.