Skilled Migrant Professionals December 2015 | Page 25

Migration Migration In Australia A positive force for economic growth A ccording to independent modelling by the Migration Council of Australia, over the next 35 years migration will drive employment growth and will continue to play a critical role in Australia’s economic future and well-being. By 2050, it is estimated that migration will be contributing $1.6 trillion to Australia’s GDP. The economic impact of migration flows through into every aspect of Australia’s economy and has a profound and positive impact on labour participation, employment, population, net productivity, national skills base, wages and incomes. Over the last two decades, Australia’s migration policy has placed us in a very advantageous pos ition. With efforts to prioritise skills as a primary driver of selection, the way forward is being paved for a prosperous Australia in the coming decades. The focus of the migration program was to attract highly-skilled entrants to help address Australia’s aging profile, with a shift towards temporary migration, international students, and workers holding 457 visas. Migrants were selected via a complex two-step process, which identified who would fit best within Australia’s labour market and fill skills shortages in various industries. This skilled framework has By Julie Kong, ISA Group driven a transformation in the profile and characteristics of new entrants into Australia and has positioned the nation to reap the benefits over the next 35 years. The increasing rate of labour participation, which has been driven by migration, has had strong economic benefits in the employment sector. This is because it has been found that migration increases Australia’s population and adds younger workers with high participation rates. This is an important factor to note as migrants play a key role in mitigating the effects of an aging population in Australia. With higher migrant participation rates, in comparison with the Australian-born population, labour income and contribution to the government in terms of taxes has increased. This has also resulted in a reduction in reliability of migrants on government services, as they generally receive less government entitlements, particularly if these migrants hold temporary visas. In relation to economic contribution, a wide variance exists between the various visa categories. There is a large proportion of permanent skilled, temporary skilled, and student visa holders, at a younger average age; which is positively contributing to Australia’s economy. December 2015 | www.smpmagazine.com.au 25