DIMIA Annual Report 2002-03
KEY HIGHLIGHTS - ECONOMIC IMPACT OF MIGRATION
| Australia is an immigration country 'par excellence.' (OECD, Economic Surveys 2002-03: Australia) 'Australia.has long been ahead of the game in its research into its migration policy. It is almost certainly the most informed migration policy in the world.'(Professor John Salt, Migration Research Unit, UCL, 2002) The Migration Program has consistently delivered economic and social benefits to Australia. In 2002-03 there was a continued focus on the important contribution skilled migrants make to this country. The outcome for the Skill Stream continued to increase from 29 per cent in 1995-96 to 61 per cent in 2002-03. This is the largest Skill Stream on record and is likely to increase further in 2003-04. Overall the Migration Program will be maintained at between 100,000 and 110,000 per annum over four years (plus a parent contingency reserve) starting in 2002-03. The importance of the current program is reflected in research that indicates that, in about 15 years, it is only immigration that will prevent an absolute decline in the number of Australians of labour force age. Significantly, far more people in major occupations, such as nursing, are coming to Australia than are leaving, especially when long-term temporary entrants are taken into account. The Australian experience has seen skilled migrants create work for lower-skilled Australians and cause a re-distribution of income towards these workers. Research has shown the strong labour market outcomes for recent migrants, with median incomes 18 months after arrival in Australia for all applicants being $433 per week. For skilled migrants (ie independent/business and employer nomination combined) average weekly earnings are around $720 per week and for business migrants $774 per week. Unemployment rates are around six per cent after 18 months in Australia for skilled applicants and there is a very high labour market participation rate of around 90 per cent. Based on findings from the Longtitudinal Survey of Immigrants to Australia (LSIA), recent migrants are also healthy and happy. Ninety four per cent of primary applicants are satisfied with Australian life. Over 90 per cent intend to apply for citizenship and over 92 per cent are in good health. The planned 2002-03 Migration Program, if continued over the next 10 years, is estimated according to preliminary modelling by Access Economics to provide net benefits to the Commonwealth Budget of around $30 billion (in constant 2002-03 prices and without savings in Public Debt Interest (PDI)). If PDI impact is included the net benefit over the same period is around $34 billion. |