Prime Minister Anthony Albanese has announced that Treasurer Jim Chalmers will convene a roundtable at Parliament House later this year, aimed at addressing Australia’s productivity challenges.

This gathering is intended to shape the government’s economic growth agenda and is scheduled for August, involving leaders from the business community, union movement, and civil society.

In his address at the National Press Club, Albanese highlighted the importance of productive dialogue, stating that the roundtable seeks to address a focused set of issues that will garner broad support for economic reform.

The objective of this reform is to drive growth, enhance productivity, fortify the federal budget, and maintain economic resilience amid global uncertainties.

Albanese emphasized that the government's economic strategy revolves around ensuring Australians earn more and retain a larger proportion of their earnings, aspiring to create a system where economic growth, wages, and productivity rise concurrently.

Labour productivity, defined as output produced per worker or per hour of work, has seen a concerning decline in Australia.

Recent data from the Australian Bureau of Statistics reported a 1 percent decrease in productivity for the year leading to March.

Economists have raised alarms regarding this trend, and Chalmers has recognized the necessity of improving productivity as a primary focus, dubbing it the most critical structural challenge facing the economy.

This roundtable follows a precedent set by the 2022 Jobs and Skills Summit, which Albanese acknowledged during his speech.

This previous summit gathered various stakeholders to discuss key issues affecting workforce skills, with a focus on addressing labor shortages and enhancing vocational training programs, such as the free TAFE initiative.

Albanese noted that the outcomes of that summit have been beneficial, preventing deeper issues relating to skill shortages.

The upcoming roundtable is intended to be a more streamlined dialogue compared to the extensive discussions of the 2022 summit.

Albanese responded to concerns raised by business leaders about the balance of priorities reflected in the prior summit, reiterating the government's commitment to respecting both business and union interests.

He stated that successful employers are essential for union membership, recognizing the private sector as a critical driver of the economy.

Albanese expressed commitment to increasing penalty rates and real wages, asserting that the government would ensure fair compensation for workers’ contributions while supporting productivity improvements through proper negotiations between employees and employers.

Chalmers is scheduled to present additional details about the roundtable in his upcoming National Press Club address next week.