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
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%.
Do they find
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
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
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.