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Why migration is vital for Australia

Good piece in the Sydney Morning Herald

"High levels of migration are good for Australia.

Migration tends to reduce the rate at which the population ages because migrants are generally younger than the average age of the Australian population.

About 89 per cent of migrants are under 40 compared with 55 per cent of the Australian population.

Migration also provides skilled and unskilled labour.

Without substantial migration there is upward pressure on wages as business competes for a shrinking pool of labour, ultimately driving up inflation.

We need unskilled as well as skilled labour. The present policy is too focused on skilled labour alone, but this ignores the fact that labour shortages exist at all skill levels.

Increasing population, whether through higher fertility or higher net migration, adds to economic demand, improves the taxpayer-to-retiree ratio, takes pressure off the tax base and puts downward pressure on inflation.

To quote the Intergenerational Report: "A key lesson from international experience is that countries with low population growth or declining populations, such as Japan and Italy, face lower potential rates of economic growth than countries with relatively healthier population growth."

Go here for the full article

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