MIGRATION – AN ECONOMIC RESOURCE
USING MIGRATION DATA IN ECONOMIC DEVELOPMENT TO ADDRESS LABOUR SUPPLY ISSUES IN YOUR LOCAL AREA
Ryan James ACEcD
Migration is a significant driver of economic growth and development in any region . New people entering communities can boost the local labour force , consumer demand , and innovation , while their departure can lead to the loss of their skills , knowledge , and dollars .
This article provides an analysis of population change through migration and its impact on labour supply in Australia and offers some ways it can be used for local economic development .
OVERSEAS MIGRATION In recent years , overseas migration has been a significant source of new population in Australia , the result of federal initiatives to address the country ’ s economic and labour market needs . New visa categories encouraged foreign worker numbers to grow and fill labour shortages in specific industries , supplementing businesses ’ labour needs .
The chart ( see Figure 1 .) demonstrates that when the Australian macroeconomy is not performing well , there are fewer overseas arrivals . However , the chart also shows that government policies can have a significant impact on driving an increase in arrivals . The Great Depression , stock market crash in the 80s , and recession in the 90s all coincide with lower migration numbers . Conversely , two significant increases in arrivals resulted from successful migrant attraction policies .
After World War II , the Chifley government introduced a campaign offering incentives for people to move to Australia , mostly from Europe , including the famous “ 10-pound Poms ”. In the 2000s , the Australian government introduced new visa categories that led to a significant increase in the number of people arriving in Australia . The average annual arrivals soared to nearly 200,000 , with the majority coming from India and China . This high number of arrivals has remained consistent to this day .
The recent growth has had an impact on the national age structure . The proportion of people aged 65 and over was increasing rapidly , in part as a result Chifley ’ s easier success in attracting migrants , but also from Baby Boomers aging . More new arrivals have helped mitigate this issue for now . Many migrants arrive in Australia in their working years . The largest group of people moving , both into and within Australia , are those aged in their 30s , great producers and consumers alike . This has contributed to a more balanced age structure , leading to economic benefits , including increased labour force participation and productivity .
While national fertility rates remain well below the replacement rate , at 1.59 , and Baby Boomers continue to be a high proportion of the population , the number of overseas arrivals is likely to stay high for the foreseeable future , unless we find an alternative solution to our labour supply and demographic issues .
VOL 16 NO 1 2023 10 www . edaustralia . com . au