A guy applied for a senior kitchen role at Habibi Chicken at one of our locations in Melbourne. He had good kitchen experience but was even more talented in delivery app optimizations and integrations. We hired him right away. That hire alone improved our sales by 31% in the space of just a few months.
Having skilled and talented individuals means everything for business growth, and all of us professionals consider carefully before we hire – we do not just look to fill a gap, we look to find people who bring experience to fix the gaps we see. With Australia’s productivity stagnating, or on the verge of dropping further, do we really have a well-thought-out strategy to bring and foster the right skills that we need to improve our national productivity? It does not seem that way.
I was at an event not far from Martin Place at Incorp Advisory’s offices in Sydney last week, where I had the privilege of listening to Paul Bloxham. Paul is the Chief Economist at HSBC (Australia) and has also worked at the Reserve Bank in various roles. Paul was brilliant and spoke on the state of the Australian Economy, Trump’s trade tariffs, and the underpinning need for Australia to improve its productivity.
I mentioned in a previous publication that Australia continues to lag on the innovation index here, but how do we place as a Nation on productivity?
In Australia, productivity is measured by the ratio of output to inputs. The ABS produces measures of output and inputs for different industries, sectors, and the overall economy. These measures are then combined to calculate productivity, typically expressed as output per unit of input.
Statistics on productivity in Australia show that in 2022-23, the 20-year average annual growth rate was 0.9%. It has fallen from 1.2% in 2021-22 fallen from 1.8% in 2003-04.
It is clear that we continue to lack both innovation and productivity, and this could be because of our heavy reliance on commodity exports, particularly in resources and energy.
On 13 December 2024, the Productivity Commission (PC) was commissioned by the Treasurer to: conduct five inquiries to identify and report on priority reforms in each of the areas under the Government’s five-pillar productivity growth agenda (New PC inquiries on the five pillars of productivity).
Specifically, these are priority reforms that enhance productivity through:
a. Creating a more dynamic and resilient economy.
b. Building a skilled and adaptable workforce.
c. Harnessing data and digital technology.
d. Delivering quality care more efficiently.
e. Investing in cheaper, cleaner energy and the net-zero transformation.
Being an immigration lawyer, with our parent office in the UAE, my passion is in bringing skills to Australia to improve our Nation’s ability to innovate in the private sector. With that in mind, to build a skilled and adaptable workforce to increase productivity in Australia, an immigration program that focuses on entrepreneurship, startups, and innovation is needed.
Minister Claire O’Neil scrapped the Business Innovation and Investment (Provisional) 188 Visa last year and since then Australia does not have any specific visa program that can expressly attract talented individuals. While the rebranded National Innovation Visa (858) was launched last year, the 858 criteria is for a select few that very few entrepreneurs and innovators around the World would meet. As such, it seems Australia is missing out on its opportunity to build a skilled and adaptable workforce.
While Australia has the General Skilled Migration (GSM) program, which invites skilled migrants by invitation, there is very little Government engagement with those migrants who arrive under GSM to ensure their skills can be appropriately utilized.
As one contrasting example, the UAE has free trade zones which are established to promote economic activity, innovation, and international investment, with about 46 Free Zones scattered throughout the country. With 0% import tariffs and tax incentives, UAE free zones attract businesses across industries, particularly those looking for regional headquarters or expansion bases. Further, the free trade zones are empowered in a way where the company and visa renewal process occur through the free trade zone, keeping the business ecosystems engaged, functional, and aligned with that area.
While Dr Jim Chalmers MP renewed conversation around productivity post the elections, it is now very important that a new immigration strategy runs alongside the Government’s five-pillar productivity growth agenda.
Australia could consider a policy where it keeps the general skilled migration policy but invites entrepreneurs and innovators to work in specific economic zones in States, specific regional growth centers, and existing special activation precincts.
Footnotes available upon request.
