Oz to reduce immigration levels?

A recent report in The Australian newspaper reveals that demographer Peter McDonald has warned Prime Minister Kevin Rudd against reducing immigration levels, as he fears this could damage the country's chances of boosting the economy long-term...

According to The Australian, Professor McDonald fears that short-term, knee-jerk reactions to the current rising unemployment levels will lead to reliance upon younger skilled workers emigrating to Australia to support an aging population.

"Labour shortages emerge, and attempts are made to plug them through training or immigration.  This approach often leads to short cycles of under- and over-supply, as has been evident in the IT industry in recent years," Professor McDonald said in his report.

"In the short to medium term (the next 20 years), immigration is the only means available to meet large aggregate labour demand in Australia."

Professor McDonald, who is Director of the Australian Demographic and Social Research Institute, said that traditionally, immigration levels always reflect economic circumstances, so when the economy is in recession migrant numbers are drastically cut to fight rising unemployment.  However, the problem arises when the economy begins to grow again, and there are no skilled workers to support this growth.

"Migrants do provide their own economic stimulus," Professor McDonald said.  "They come into the country with money, they spend it to buy houses and set themselves up."

However, McDonald also warns against immigration levels hitting new heights, stating that numbers need to fit with infrastructural plans, including housing, transport, water and appropriate energy supply.

The Australian migration quota reached record heights this year, with 133,000 immigrants arriving in Oz.  Minister for Immigration and Citizenship Senator Chris Evans stated the 133,000 skilled visas quota would be the ceiling until his department has fully assessed the needs of the Australian economy in time for the mid-year Budget release.

Source: www.embraceaustralia.com