The productivity problem driving up interest rates
Oct 15, 2026 •
For generations, Australians could reasonably expect that their lives would be more prosperous than their parents.
But over recent years, that bargain has started to break down.
Productivity growth has barely moved for a decade. We’re working more hours, without producing much more for each hour we work, and that stagnation is showing up in incomes, living standards and rising interest rates.
Now with economic growth under pressure, the government is betting that new technology, particularly artificial intelligence, can help turn things around.
Today, Productivity Commission Chair Danielle Wood, on why Australia has stopped becoming more productive, whether AI can change that, and what happens if it can’t.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
The productivity problem driving up interest rates
2075 • Oct 15, 2026
The productivity problem driving up interest rates
For generations, Australians could reasonably expect that their lives would be more prosperous than their parents.
But over recent years, that bargain has started to break down.
Productivity growth has barely moved for a decade. We’re working more hours, without producing much more for each hour we work, and that stagnation is showing up in incomes, living standards and rising interest rates.
Now with economic growth under pressure, the government is betting that new technology, particularly artificial intelligence, can help turn things around.
Today, Productivity Commission Chair Danielle Wood, on why Australia has stopped becoming more productive, whether AI can change that, and what happens if it can’t.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
Guest: Productivity Commission Chair Danielle Wood
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7am is a daily show from Solstice Media.
It’s made by Atticus Bastow, Chris Dengate, Daniel James, Krystal Keller, Ranee Orklin, Ruby Jones, Travis Evans, Yeo Choong and Zoltan Fecso.
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