Tuesday, July 19, 2011

Slashing migration to Australia won't hurt, says report

AUSTRALIA could meet looming skills shortages created by the resources boom with just half the annual migration intake planned by government, a report says.

Researchers led by demographer Bob Birrell have found that if today's net overseas migration target of 180,000 a year were slashed to 90,000, the pool of available workers would still expand significantly over the next decade.

Business groups and economists have argued net overseas migration of at least 180,000 will be needed as mining skills shortages intensify in the next few years. This is a far cry from the 320,000 peak reached in 2008, which sparked the "Big Australia" debate.

However, the report from Monash University's Centre for Population and Urban Research, to be released today, challenges "alarmist" business claims that the mining boom requires higher migration.

Instead, it suggests the key to skills shortages could lie in the participation rate - the share of the population who enter the labour force - and some temporary migration.

For instance, there has been a sharp increase in participation among men and women over the age of 55 in the past decade. If this trend of more participation continued, the report said Australia's workforce would expand by 1.7 million by 2021 if annual net migration were halved to 90,000.

Even if participation rates remained unchanged, the workforce would grow by one million over the same period, it said.

Alongside temporary migration, this would be adequate to meet skills shortages if migration were better targeted to employer's needs, it said. "It can safely be concluded that a [net overseas migration] of 90,000 per year is not the dark apparition business advocates imply," the report said. "The bulk of current migration has little to do with providing scarce skills to the resources industries."

Rather than mining, the majority of recent migrants worked in professional urban jobs, or were studying or taking working holidays, it said. Twenty-six per cent of migration growth in recent years was linked to employer sponsorship.

The report has one point of agreement with government: it concedes temporary migration would be needed for the mining boom. This year's budget made it easier for projects worth $2 billion with a peak workforce of 1500 people to employ foreign workers.

Although the report is likely to receive a cool reception from mining companies, there is a point of agreement with the industry. Miners have also recognised the need to tap more diverse domestic sources of labour, including female workers.

The chief executive of resources employer group the Australian Mines and Metals Association, Steve Knott, last month said the industry could do more to attract women to the male-dominated trade.

"With 92 per cent of AMMA resource industry employers stating they wish to employ more women, and being an industry where currently less than one in five workers are female, there are immense opportunities for Australian women to have a fulfilling and long-term career in the industry," he said.

SOURCE




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