Immigration Reductions Possible for Australia

Following earlier speculation about a cut in immigration numbers, the likelihood is growing that Australia will reduce the number of immigrants allowed into the country. If the global economic crisis pushes unemployment higher – as it seems certain it will – Australia’s immigration program has been earmarked for cuts.

Australia’s Immigration Minister Chris Evans is waiting for next month’s mid-year economic report before making a final decision.

Meanwhile, opposition immigration spokeswoman Sharman Stone said the record 190,300 migrants planned for the coming year should be scaled back to the 2005-06 level of 143,000 – a 25% reduction.

Mr Evans said the country’s current migrant programme was put together when good economic growth and a continuing skills shortage were forecast.

“If those parameters are changing, the government will take a sober look at those issues and make a decision when we have got proper information,” he told Nine Network viewers today.

Mr Evans struck a hopeful note for people still hoping to move to Australia, pointing out the contribution new arrivals make to the economy.

“We know that they consume, they buy property, and they’re a net positive to the budget,” he said.

“And a lot of the skills that are coming in at the moment are in the mining sector, which has allowed us to increase our exports.”

He said there were still industries which had a “strong demand” for labour and the government would analyse the economic situation and consult industry before deciding on what to do.

Opposition spokeswoman Sharman Stone was more forthright. In comments reported in the Age, she said:

“With all the indicators now pointing to a significant downturn in the employment market, the Government must end its dithering and scale back its migration program urgently,” Dr Stone said.

“Unless migrants have prospective employers demanding their specific skills, a big lift in migration will only compound the pressures in what is becoming a much tougher and more competitive scenario for job-seekers.”