What is the impact of migration on Australia?

What is the impact of migration on Australia?

What is the impact of migration on Australia?

28% of Australians were born overseas, making this country one of the most multi-cultural in the world. From the gold rush in the 1850’s, to the post-war migration boom and the recent arrival of migrants with the mining boom, Australia has a higher share of migrants than most other countries. Is it no surprise to learn that one person arrives in Australia every minute and 24 seconds?

They are great contributors to this economy as evidence shows they lift the three “P’s” of economic growth namely population, participation and productivity.

How do migrants contribute to the economy?

A recent report released in April 2018 by the Treasury and Department of Home Affairs showed that migrants pay more in tax and consume financially less in the services they rely on while here. This effectively means the Australian Government benefits from billions from the migrant population.  The study also takes into account the higher level of services which they require in older age.

The research showed that permanent skilled migrants contribute $6.9 billion over their lifetimes, temporary skilled migrants (457 visas) $3.9 billion and family stream migrants $1.6 billion.

Australia has a stable fertility rate of 1.9 births per woman, which is below the replacement level, without migration, the population would dwindle.  A larger population will not necessarily harm the economy.

Capital infrastructure is high in fixed costs and low in marginal costs which means it would become cheaper to expand and renew the infrastructure as the population swells.

Government figures show that at the turn of the century 90,000 immigrants a year make Australia their new home, it now stands at 190,000.

It’s led to a surge in the population growth rate which has risen 1.8% in the past 15 years. The more people in the country the more you will see the economy grow as there is a greater population to buy goods and services.

Where do they settle?

Most new migrants head to larger cities where they know they can find work.  The most popular are Sydney and Melbourne.  Since 2003 Melbourne’s population has swelled by almost 1 million with Sydney not far behind.

Over a year period in 2016, migration flows increased in NSW by 31% and in Victoria by 23%.

There is only a minority who rely on social security benefits, most are hard-working and conscientious, and statistics show that migrants are more likely to set up their own business and have entrepreneurial spirit.

Do they find jobs easily?

It’s no surprise that migrants who obtain Australian citizenship since arrival were more likely to be employed, with the figure at 77%. 63% of migrants on a permanent visa are employed with 59% on a temporary resident visa.  

Research from the Australian Bureau of Statistics reveals that the hardest time for migrants to pick up work is within the first five years. Migrants from the Middle East and North Africa have a jobless rate standing at 33% which is six times higher than the national average for Australia. But the good news is that Asian and European immigrants have an even lower jobless rate than Australian born workers after living her five years.

The unemployment rate for recent migrants and temporary residents was 7.4%, compared with 5.4% for people born in Australia. Migrants with Australian citizenship had an unemployment rate of 3.3%, temporary residents 8.6% and recent migrants on a permanent visa 8.8%. 

There is only a minority who rely on social security benefits, most are hard-working and conscientious, and statistics show that are more likely to set up their own business and have entrepreneurial spirit.

Why do we need to keep migrant numbers up?

A recent report by the Australian Productivity Commission says by 2055 the number of people aged 65 and over is expected to double with less people between 15 and 64 working.  

We need more people in employed status to help fund those in later life. An aging population slows labor force growth prompting economic stagnation.  Migrants are real asset to the economy especially with new arrivals bringing financial benefits as the baby boomers of the 1950’s start to retire.

The Migration Council of Australia says 250,000 migrants would be needed a year to boost the economy to an acceptable level of $1.6 trillion by 2050.

If you want expert migration advice on how to secure your future in Australia, why not pick up the phone and call Visa Solutions today?  We can advise you on your migrant journey to the start of your new life in Australia.

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