MELBOURNE: Australians must become more productive or risk losing their famously relaxed lifestyle as the population ages and the workforce shrinks, Prime Minister Kevin Rudd warned.
He said the country now needs to boost productivity as the population becomes increasingly elderly and tax revenue from workers falls. 'It is productivity growth that must play the central role in building Australia's future economic growth,' he said in a speech in Melbourne on Monday.
More people need to be encouraged to join the workforce and the education system should adapt to make Australia more efficient and competitive, he added.
It is estimated that the population will grow from 22 million now to 36 million by 2050. Increasing life expectancy means the proportion of citizens aged 65 or more will jump to almost one in four by that time. As a result, the number of workers per retiree will be reduced to 2.7 from about five now.
These demographics mean that public finances will be burdened, Mr Rudd said.
'If we let the trend of lower productivity growth continue, Australia will struggle to meet the major challenges facing our economy in the decades ahead,' he said.
AGENCE FRANCE-PRESSE, BLOOMBERG
Source: Straits Times, 20 Jan, 2010.
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