Skilled Migration Flashcards
Skilled Migration in Australia
- Each year The Department of Home Affairs limits the amount of visas for migrants to enter Australia
- Our focus is on skilled migration - migrants who already have a university degree and/or industry experience
- Estimates for over 600,000 skilled migrants to enter Australia over the next few years.
Impact of Skilled Migration on an Aging Population
- Australia has an ageing population which can lead to capacity constraints
- Skilled migration increases the population of Australia and filled the gaps left by our ageing population.
Impact of Skilled Migration on Participation Rate
- Almost 100% of skilled migrants will enter the labour market (labour force)
- Thereby increasing the labour force participation rate.
PR = labour force / working aged population
Impact of Skilled Migration on Productivityq
- Skilled migrants bring unique skills and knowledge and innovation to Australia
- Fills skill shortages
- Increase competition for jobs
All of these cause an increase in labour market productivity
Impact of Skilled Migration on AS and our goals
-> Increase the ability of Australian businesses to produce
-> Increase productive capacity
-> Increase the AS curve
-> Brings us closer to the achievement of our goals
Impact of Skilled Migration on Material Living Standards
Skilled immigration alleviates skill shortages and improves our international competitiveness. This causes an increase in growth and jobs in the Australian economy thus improving MLS.
Some industries may face a decline in incomes (due to increased competition for jobs) and some Australians may lose their jobs –> Decrease in MLS.
Impact of Skilled Migration on non-material living standards
Immigration brings new cultures and improves multiculturalism and in Australia, this improves non-material living standards.
Explain the impact of skilled migration might have on Aggregate Supply and Productive Capacity in Australia in 2023.
(Sample Question)
Australia is tackling declining birth rates and an ageing workforce by focusing on skilled migration. The 2023 Migration Program allocates 30,375 Skilled Independent visas to attract specialized talent, boosting skilled labor, increasing aggregate supply, and enhancing the country’s productive capacity.
