The Prime Minister Kevin Rudd has called for the diversification of the Australian economy to take up the slack left by what he said was a slowing in the resources sector.
Speaking at a Community Cabinet in Rockhampton, Queensland, Mr Rudd said the government needs to boost the overall level of competitiveness and productivity in sectors such as energy, telecommunications and small business.
He called for more investment in young Australians, who he described as the "workforce of tomorrow".
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Mr Rudd says Australia cannot afford to rely too heavily on the resources sector for its future prosperity.
"Instead, we need to diversify and see new jobs come in manufacturing, new jobs come, also, in critical industries like the construction services industry, the mining services industry, as well as the financial services industry, but also in agri-business as well."
It was Mr Rudd's first community cabinet meeting since he returned to the Labor leadership last month.
