Australians are working longer hours but it's not showing up on the productivity scoreboard as levels tumble to a post-pandemic low.
The Productivity Commission's quarterly bulletin reinforces the scale of the challenge confronting Treasurer Jim Chalmers.
Breaking down Australian Bureau of Statistics data, the report highlights labour productivity fell by 0.6 per cent in the March quarter while hours worked grew by 0.9 per cent.
In the year to the end of March, labour productivity was up a paltry 0.3 per cent compared with 2.2 per cent growth in hours worked.
"Australia's labour productivity growth is going from bad to worse," commission deputy chair Alex Robson wrote.
"The accounting is straightforward: the value of goods and services we produce is increasing, but not by as much as hours worked.
