Federal opposition frontbencher Jim Chalmers believes a wages recession is a key factor behind the Australian economy underperforming during the best global conditions in a decade.
Labor's finance spokesman will tell a Brisbane conference on Friday Australia now ranks 20th for economic growth behind the likes of Mexico, Estonia, Finland and Latvia.
"During the peaks of the global financial crisis, we ranked fourth-highest in the OECD ... similar countries like the US, UK, Japan and Germany were contracting," he will tell the Committee for Economic Development of Australia conference.
"We're underperforming in the best global conditions in a decade when it wasn't long ago we were overperforming in a very difficult global context."
He noted company profits have grown 20 per cent the past year but wages are up just two per cent, at a time when the underemployment rate remains near record highs.
Dr Chalmers said there are three things Labor and the coalition agree on - both want economic growth, fiscal repair and businesses to succeed, prosper and employ more people.
But Labor believes the right kind of economic growth starts from the "bottom up, not top down".
He said to build productivity in workplaces increasingly dominated by machines, there needs to be investment in human capital through education, skills and training.
At the same time, Labor's fiscal responsibility underpins its opposition to $65 billion in big business tax cuts at a time when the budget can least afford it.
"I don't begrudge those in the corporate world who have been championing them. But these aren't ideal circumstances - the budget's a mess," he will say.
"We think that we get far more bang for our buck investing in schools, apprentices, universities and public infrastructure."
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