Australia’s Prime Minister Anthony Albanese has defended his government's economic performance by highlighting Labor's solid track record in job creation in response to criticism from a major business lobby group.

The PM dismissed claims on Tuesday made by Business Council of Australia CEO Bran Black, who suggested that the country's prosperity is gradually “slipping backwards.”

“We have halved inflation since we've come to office, but without punishing people on the way through, whilst making sure that cost of living measures continue to be addressed,” he told reporters.

Black is scheduled to address a dinner on Tuesday, where he plans to caution the government that a significant number of CEOs feel Australia is “losing its way” with regard to economic prosperity, Yahoo News reports.

“Instead of taking the big steps on the things that matter, we are taking incremental - but noticeable - steps backwards,” he is set to say.

Furthermore, the CEO of the Business Council of Australia specifically criticised the federal government's workplace relations reforms, calling them a challenge for businesses and urging the abolition of multi-employer bargaining. 

The Albanese government reintroduced these laws in 2022, enabling unions to negotiate agreements that cover multiple employers, particularly benefiting workers in sectors like childcare by helping them secure higher wages. 

According to Black, many employers have become “far, far more cautious” about hiring since these workplace changes were implemented.

Moreover, Albanese stated job creation in Australia has been robust under these reforms, with “the clock ticking on whether we will reach one million new jobs” ahead of the labour force data being published on Thursday.

“We are seeing higher wages, we're seeing continued growth, we're seeing a continued rise in business investment,” he said.

Australia's economy has been experiencing a slowdown, largely as a result of efforts to curb inflation. Despite this, the labour market has remained a strong point, showing resilience amid the broader economic challenges.