Put simply, each migrant of working age adds to the labour supply and demand for goods and services, boosting the economy. Migration Council Australia estimates that by 2050 our population will be 38 million and migration will be contributing $1.6 trillion to GDP. But, as with most things, immigration has both benefits and drawbacks.
MORE WORKERS NEEDED
One of the more pressing and topical issues is that we need migrants to help meet the labour shortfall that many businesses are experiencing.
With the unemployment rate still hovering at around 3.6%, many businesses are having problems finding the staff they need. Unemployment is predicted to rise by the middle of next year, easing labour market shortages, and the government has already lifted the caps on permanent migrants and made changes to its temporary skilled migration program.
But as Federal minister for home affairs, Clare O'Neil, told the National Press Club in April, there are challenges facing the economy that will need help from immigration.
"We confront the most challenging geopolitical circumstances since the 1940s," she said. "Australia needs to build better sovereign capabilities, fast.
"Our ageing population will demand more workers in health and aged care than our domestic population can supply.
"If 'populate or perish' described Australia's challenge in the 1950s, skill up or sink is the reality we face in the 2020s and beyond. Today, we aren't bringing in as much talent as we need, and we aren't making the most of the talent we've got."
PRESSURE ON HOUSING
The flipside of this, however, is that much of the blame for the housing crisis is due to the shortfall of property to meet demand boosted by immigration.
According to AMP chief economist Shane Oliver, Australia had net immigration of around 500,000 people last financial year.
This story is from the December/January 2023 edition of Money Magazine Australia.
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This story is from the December/January 2023 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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