Sep 7, 2026 – 4.00pmProductivity in government-funded sectors such as health and aged care has hit a 10-year low despite soaring employment in the sector, with similar slumps in the construction industry raising fears of a hit to Australian living standards.Analysis of Australian Bureau of Statistics data by the Productivity Commission showed non-market sector labour productivity for March had dipped to its lowest level since 2007 after slipping for two consecutive quarters, with productivity across the entire sector now 0.3 per cent weaker than a year ago. The last time it dipped that low was September 2016.clarification—A previous version of this story contained graphics which were incorrectly labelled. They have been removed.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles