Economic migration and Australia in the 21st century

Abstract

This Analysis assesses the benefits and challenges of contemporary economic immigration in Australia. While the policy arrangements underpinning economic immigration have undergone significant changes in recent decades, Australian governments have managed this transition successfully. Increased intakes of skilled immigrants have assisted structural transitions in Australia’s economy, delivered tangible benefits in addressing challenges related to population, and produced positive effects in relation to fiscal impact, productivity, and immigrants’ employment and labour market outcomes. Notwithstanding these benefits, significant challenges have emerged in relation to temporary visa schemes, in particular: the lack of workplace protection and the need for greater social assistance for temporary migrant workers; the misalignment of skilled immigration regulations with the needs of the labour market; and skills underutilisation and gender bias in skills assessment. The Analysis makes policy recommendations to help address issues of mistreatment and underpayment of temporary migrant workers, ensure that the allocation of temporary skilled visas reflects genuine skills shortages, address problems of gender inequity, and ensure that policy settings remain responsive to future workforce needs. These policy adjustments are necessary for maintaining public confidence in expansive economic immigration arrangements that are important for sustaining national prosperity.