News: Research
SA household spending loses momentum as cost-of-living weighs heavy
Aggregate spending in South Australia has lost momentum over the past year as cost of living issues have weighed on household spending. Nonetheless, the State has enjoyed an especially strong recovery from the pandemic, and many areas of the economy are now operating at very high levels of capacity. These conclusions are contained in the latest Economic Briefing Report from the SA Centre for Economic Studies.
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SA economic growth to moderate as headwinds intensify and capacity constraints are reached
The latest Economic Briefing Report from the SA Centre for Economic Studies concludes that the SA economy will continue to expand in the new year, but at a slower pace. After two years of rapid growth, the state economy is now operating at a very high level of capacity utilisation with unemployment at low levels. Tighter financial conditions, cost of living pressures and high energy prices are all expected to have a dampening influence on growth in 2023.
Mitigating work related financial disincentives faced by Age Pensioners can help address the skills shortage
Raising the labour force participation of Age Pensioners would help to address existing skills shortages within Australia. A new research paper from SACES examines a potential policy reform to address the current financial disincentive to participate in the labour force faced by those on the Aged Pension.
SA economic recovery to continue despite cost of living crisis
South Australia’s economic recovery is set to continue despite inflation and rising interest rates putting increased strain on household budgets. But with household and public sector consumption expected to weaken, the State’s export performance will need to improve to compensate. These conclusions are contained in the latest Economic Briefing Report from the SA Centre for Economic Studies.
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SA construction sector remains strong, but faces headwinds
Overall activity in the South Australian construction sector should remain at its current robust level over the near term. But recent large price increases for inputs and the gradual erosion of recent supportive factors will present near and medium-term challenges for the construction sector, especially residential building. These insights are contained in a newly released paper from SACES which assesses the state of general business conditions in the construction industry in South Australia.
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SA economic recovery to continue but reopening no guarantee of economic windfall
South Australia’s economic recovery is expected to continue well into the new year. Recent strong growth in business investment, a backlog of construction work, and reopening of borders will support the ongoing recovery. But the economic benefits of reopening will be diminished to the extent that it leads to fresh COVID outbreaks and voluntary social distancing.
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Education can mitigate COVID-19 employment shocks
A new research paper from SACES which examines the impact of COVID-19 on employment in South Australia with particular reference to the young argues that more support for education and training is the key to offsetting the employment impacts of similar shocks.
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Business tool reduces risk of implementing AI tech
Artificial intelligence (AI) is increasingly being embraced by Australian businesses to enhance their business operations. While the economic and societal risks of AI have received considerable attention, there is less appreciation for the potential Work Health and Safety (WHS) risks posed by AI use in the workplace. As part of a collaborative research project SACES has investigated the potential WHS risks of AI and helped develop a risk management tool to help companies manage potential workplace health and safety risks related to the introduction of AI technology.
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Policy support offers opportunities for SA post pandemic
Policy support from the South Australian and Federal governments for employment and training initiatives could play a crucial role in boosting the State’s population and recovery from the impact of the COVID-19 pandemic, according to the University of Adelaide’s SA Centre for Economic Studies. These conclusions are drawn from three policy papers which consider the demographic and labour market impacts of COVID-19 on South Australia.
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Artificial intelligence revolution offers benefits and challenges
Artificial intelligence (AI) is the subject of much, and sometimes fantastical, speculation. However, the development of powerful mathematical models and increasing computer power have combined to make AI economically useful for a wide range of tasks, and companies report that the adoption of AI has delivered improvements in sales and efficiency. In an Issues Paper just released by SACES, the Australian Institute of Machine Learning argues that AI has reached a global tipping point and that Australia needs to invest in research and development in order to take advantage of this next wave of automation. Australia urgently needs a formal, national strategy for AI to ensure that we are net beneficiaries and not simply powerless recipients of this new and potentially disruptive technology.
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