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Australia’s labour productivity and per capita GDP growth slowed alongside the massive increase in net overseas migration in the mid-2000s.
This slowdown in productivity and GDP per capita growth is illustrated clearly in the following chart, which plots labour productivity (GDP per hour worked), per capita GDP, and the immigration rate (i.e., immigration as a percentage of the population):
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As immigration surged from the mid-2000s, labour productivity and per capita GDP growth stalled.
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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.