Economic Perspective 31 July 2026
- Jul 31
- 3 min read
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello Dear Readers,
This week our focus is on government policy and operations. Public confusion over ABS workforce data categorisations can warp perceptions of economic narrative, in this case causing overestimations of government employment relative to the private sector - I've attached a figure at the end to demonstrate the divide. Next, a joint statement with Singapore has reiterated Australia's priorities for strengthened energy security relations given that Singapore is our largest supplier of refined petroleum products, and the DCCEEW has been subject to the five-yearly Capability Review, recommending strategies to overcome siloed operations. Finally, new OECD guidance highlights the need for structured experimentation with generative AI amongst government agencies to prevent fragmentation and misuse.
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Happy reading and have a lovely weekend!
The debate about the 'non-market sector' is confused, ABS official says
Miscategorisations can muddy our understanding of economic trends. A senior researcher at the ABS has highlighted that recent conceptions of public sector employment having outpaced the private sector (the classic "bloated government" image) are based on misrepresented buckets: inaccurately named "non-market sector employment", often interpreted as government employment, is actually composed of around 50-50 private and public sector jobs, with varying ratios across health, education and public admin, which are the sectors composing the "non-market" category. Stories about bloated governments may be more accurately construed as reflecting rapid health sector growth, likely linked to the aging population. Read more here.
Joint Ministerial Statement on the Inaugural Australia–Singapore Ministerial Dialogue on Energy
This week, Singapore's Minister for Energy, Trade and Industry released a joint statement with Australia's Minister for Climate Change and Energy reaffirming the two countries shared priorities for energy security. Singapore is Australia’s largest supplier of refined petroleum products, while Australia is one of Singapore’s key suppliers of liquefied natural gas (LNG), and Minister's highlighted growth in new areas such as cross-border electricity trade and low-emissions technology. Read more here.
DCCEEW publishes capability review action plan
The Department of Climate Change, Energy, the Environment and Water have published an action plan in response to the recent departmental Capability Review, which all government departments must undergo every five years. The Review recommended to prioritise overcoming siloed operations through internal collaboration, improve relationships with delivery partners, and develop on overarching strategy for workforce management. Improved capabilities in the DCCEEW will be vital for the protection and cultivation of Australia's natural environment. Read more here.
AI experimentation before deployment: OECD advice for government
An OECD working paper on the use of generative AI experimentation in government advises agencies to adopt structured experimentation before implementing AI in day-to-day use. The report foud that, across 14 countries, GenAI experimenation is widespread but highly fragmented, with governments issuing high level principles but lacking detailed operational directions for use. While Australia's government has multiple high level guiding documents, there may still be gaps in effectiveness. Read more here.
Public and private sector jobs, by proportion, in each industry (March 2026)
This figure from the ABC based on ABS data reveals the ratios of private-sector vs government jobs across health, education and public administration, despite all three being confusingly classed as non-market sectors.
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