Australia’s economy has grown steadily since 1991, supported by the commodities boom and strong public finances. It avoided recession during the global financial crisis but entered a brief recession in 2020 because of the Covid-19 pandemic before recovering quickly.
By 2022, unemployment and real weekly earnings had returned to pre-pandemic levels, although high inflation later reduced real wages. While the labour market has generally remained strong, concerns include rising long-term unemployment, weaker opportunities for young people, a persistent gender pay gap, and growing income inequality. Greater use of tax and welfare measures could help reduce income inequality and support lower-income households.
