Page 1 - 2023 Intergenerational Report Factsheet

Intergenerational Report 2023 at a glance

Five major forces that will shape the Australian economy over the coming decades
are population ageing, expanded use of digital and data technology, climate change
and the net zero transformation, rising demand for care and support services, and
increased geopolitical risk and fragmentation.

Australia’s future prosperity will be influenced by how well we manage and
maximise these shifts underway in the economy. The Government is acting to repair
the budget, build the skills and capabilities of our workforce, foster a more dynamic
and productive economy, broaden opportunity, and strengthen national and
regional security. The Government is also investing in care and support services and
positioning Australia to make the most of the opportunities from the net zero and
digital transformations.

The economy in 40 years Nevertheless, Australia’s population is expected
to remain younger than most advanced
The economy is projected to be around two and economies.
a half times larger and real incomes around
50 per cent higher by 2062–63. Participation

But, like other advanced economies, our More people are participating in paid work than
economy is projected to grow at a slower rate ever before and the labour force participation
over the next 40 years than in the past, at an rate is near record highs.
average of 2.2 per cent a year. But as the population continues to age over the
Population next 40 years, the overall participation rate is
projected to decline gradually from
Australians are expected to live longer and
spend more years in full health. 66.6 per cent to 63.8 per cent in 2062–63.
Average hours worked is also expected to
Australia’s population is projected to grow decline slightly.
more slowly over the next 40 years – at an
average of 1.1 per cent a year, compared to The gender gap in participation is expected to
1.4 per cent over the past 40 years. continue to narrow. Further broadening labour
market opportunities can increase overall
The population is projected to reach participation and contribute to a more inclusive
40.5 million in 2062–63, similar to projections workforce.
in the 2021 IGR.
Productivity
Migration will continue to contribute to
population growth but is projected to fall as a Productivity growth is assumed to grow at
share of the population. 1.2 per cent a year, around the average of the
past 20 years. The future path of productivity is
Australia’s population will continue to age over not a foregone conclusion and will be
the next 40 years. The number of Australians influenced by decisions taken by governments,
aged 65 and over will more than double and the businesses, and investors, and the big shifts
number aged 85 and over will more than triple. underway in the global and domestic economy.
The number of centenarians is expected to
increase six-fold.

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