The need for strong productivity growth is a prominent feature of economic policy debates
in Australia. Using the productivity trap concept, this viewpoint explores how in some
circumstances the pursuit of productivity growth is a barrier to effective sustainability
transitions. This is illustrated by a case study of the Australian baking industry, where the
increased market share of small-scale artisan bakers vis-à-vis industrial bakers has recently
led to an overall decline in productivity across the baking sector. Although artisan bakers
produce more nutritious products and have the potential to significantly increase the
energy efficiency of their operations, their labour productivity is half that of their industrial
counterparts. Whilst this is good for employment, public health and the environment,
artisan bakers have been denigrated as a ‘drain on productivity’. This case study illustrates
the potential role of low-productivity goods and services in a sustainability transition in
Australia and other developed countries.