2025 in Review — The big challenges, the shifts underway, and the road ahead

In this episode, Australian Industry Group CEO Innes Willox joins us to review Australia’s economic landscape in 2025. He reflects on a year marked by slow growth and persistent inflation, outlining why stronger government action is essential to reignite private sector confidence.We explore the pressures of rising energy costs, the country’s transition to net zero, and the growing role of AI across Australian industry. Innes also examines how businesses are reshaping their workforce strategies, the evolving workplace relations environment, and the regulatory uncertainty influencing investment decisions.It’s a big‑picture conversation about what’s holding the economy back - and what needs to shift for Australia to compete and innovate in 2026 and beyond.TakeawaysInflation remains one of the economy’s most persistent pressures. Strong, clear government action is needed to help restart private‑sector investment and growth. Businesses need greater certainty to manage the transition to net zero effectively. AI is increasingly seen by Australian companies as a tool that enhances - not replaces - jobs. Post‑election workplace relations reforms are creating significant change and increasing compliance demands. Skills and training systems must evolve quickly to keep pace with emerging technologies. The national energy debate will remain central to economic and policy discussions. A productive partnership between government and industry is essential to drive future prosperity. Here are the links mentioned in the podcast episode: DBrief special episodes & election series: DBrief: Federal Election 2025 Special Episodes Budget position: Federal Budget 2025–26—restart private sector engine Election certainty: We need a clear election result Global outlook: Global forecasts—fragile stability Net zero targets & projections: DCCEEW Emissions Projections 2023; CEFC recapitalisation & 2035 target AI case studies:  Artificial Intelligence: Positive for companies, their people, and Australian IndustryApprentices & employer barriers: Opinion: Employers behind apprentices; Job satisfaction outcomes Wage Review decision: 3.75% increase—Australian Industry Group statement Productivity & wages linkage: Productivity uplifts needed