Recent migrants spend more in Australia than they earn, adding as much to labour demand as to labour supply, the Grattan Institute says.
Boosting Australia’s immigration intake will increase rents and do little to tackle widespread skills shortages, but more skilled migrants could offer a $38 billion boost to the budget bottom line, the Grattan Institute has found.better rather than bigger should be the main priority of next week’s Jobs and Skills Summit.
“If we are going to increase the size of the intake, we also have to address the downstream impacts on things like housing, otherwise you will make the housing crisis worse than it already is, particularly for renters,” Mr Coates toldThe think tank estimates that boosting the permanent intake to 200,000 places would raise rents by a further 5 per cent over a decade.
Even if the government prioritised issuing visas to skilled applicants from overseas, the report said it would actually boost demand for labour since recent migrants spend more in Australia than they earn.“That’s why studies repeatedly find migration has little to no overall impact on the wages of local workers,” they wrote. The main beneficiary of an increase in the migration intake would be the federal and state governments.
“Business investment visa holders tend to be old; half of them are over the age of 45. The majority cannot speak good English. They typically have less than a bachelor’s degree, and they actually earn close to half of what other skilled migrants earn once they’re in the country,” he said.Mr Coates also said the skilled occupation list should be replaced with an $85,000 wage threshold, since shortages were more likely to emerge in jobs where there were high skills and high wages.
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