Australia | Oct 06 2006
By Greg Peel
Westpac reports the number of migrants arriving in Australia has been sustained at high levels over the decade to date. This is in contrast to previous historical fluctuations.
Net immigration has averaged 120kpa over the past six years compared to 92kpa in the six years prior. Such strength is reminiscent of the booming eighties. Net immigration has explained 50% of Australia’s net population growth over the period, up from the 40% average over the last sixty years.
Westpac unsurprisingly attributes the numbers to Australia’s healthy economy. There is a clear correlation between jobs growth (relative to the rest of the world) and arrivals over the period. Australia is once again a “land of opportunity”.
It is also unsurprising that migrants now spread themselves further afield, such that NSW now only enjoys a 30% migrant population growth, down from 47% a decade ago. Lower housing prices and better job opportunities in states such as Queensland have tipped the balance.
Also noticeable is the increase in “long term visitors” as opposed to “permanent settlers”. Long term visitors only represented 20% of migrants in the eighties, but represent 50% today. Westpac attributes this shift to skills shortages being more influential now than “family reunion” incentives were previously.
While policymakers will no doubt be excited by such figures, the downside is that the average age of migrants is increasing, adding to the ever present problem of a generally aging population. This raises a question of whether high immigration numbers need to be maintained, given the “baby bonus” and the Treasurer’s “Give her one for Pete” campaign has resulted in 260k new billy lids in 2005-06 – the highest baby boom since 1970-71.