Despite housing shortages, intense pressure on infrastructure and high social service costs, Australia's Labor government has maintained unprecedentedly high rates of immigration. Such high rates are not popular with the people, but they serve employers, as they put downward pressure on salaries. More importantly, they spike GDP, the only measure by which governments seem to gauge the effectiveness of their economic policies. So it is a win for employers and a win for the government, but who pays?
The workforce pays. Indeed, Australia is now in the thick of its longest per capita recession ever, and it's not letting up anytime soon. According to the OECD, we've experienced six consecutive quarters of declining GDP per capita. With population growth at 2.4% (half of which is due to immigration), the economy isn't keeping pace. This slump could last for 10 quarters or more, which is unprecedented. (macrobusiness.com.au)
The cost of immigration is borne by households. Real per capita disposable income has plummeted by 8.2% over two years—the steepest drop on record.
While government spending and immigration have kept the overall GDP afloat, the private sector is struggling. There has been zero growth in hours worked over the year, despite a 2.3% increase in population, as of September 24.
There is no clearer report card on Australia's Labor government than its decision to maintain high migration rates, which has led to a recession for Australian households. Wake up, Australia!
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