An increase in expenditure on training and education is likely to improve international competitiveness and raise living standards. For example, increased investment in training programs for government employees, or additional budget incentives to boost private sector in training of staff, is likely to improve the of human and therefore stimulate growth in labour over time.

This growth in productivity will help to reduce average of , as more output can be produced per hour of labour employed, which both increases with willingness and ability of producers to supply (i.e. boost supply) and maintains downward pressure on prices and . This helps to boost international competitiveness, as domestic producers are in a better position to compete on in the global place, which boosts growth in real GDP ( growth) and material living standards (as measured by real GDP per ) as the ability of Australians to purchase goods and services, on average, is enhanced.