Australia's immigration system is broken, and it's dragging down our productivity. The government is holding a productivity roundtable to find strategies to stop the long decline in productivity, but immigration is conspicuously absent from the agenda. This oversight is not just an omission; it's a deliberate blind spot.
The Immigration Disconnect
Leith Van Onselen, Chief Economist for MacroBusiness, has been vocal about the government's mismanagement of immigration. He points out that while immigration doesn't necessarily lower productivity, Australia is importing low-skilled migrants. This influx places immense stress on our infrastructure and increases the burden on the existing workforce. The result? Over the past three years, household wealth has been decreasing.
The government's claim that it would run a smaller and less temporary immigration program has proven false. In reality, Australia's immigration program is larger and more temporary than ever. The numbers speak for themselves.
The Productivity Roundtable: A Missed Opportunity
The current roundtable discussions are focusing on areas like tax reform, AI, and regulation. However, they are neglecting the elephant in the room: immigration. This oversight is a classic example of how politics in Australia is more about serving vested interests than addressing the national interest.
Critics argue that this approach is akin to rearranging deck chairs on the Titanic. Without addressing the root cause—mismanaged immigration policies—the government's productivity initiatives are doomed to fail.
A Call for Real Reform
It's time for a serious rethink. Australia needs an immigration system that prioritises the skills we actually need, rather than continuing to import low-skilled labor that exacerbates our productivity problems. Until this fundamental issue is addressed, any talk of boosting productivity is just smoke and mirrors.
Relevant Graphs:
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Labour Productivity Comparison (Australia vs. US):
Source: MacroBusiness
.webp)
Description: This graph illustrates the stagnation of Australia's labour productivity since 2015 compared to the consistent growth in the United States.
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GDP, Productivity, and Immigration Trends:
Source: MacroBusiness
Description: This chart shows the inverse relationship between Australia's GDP per capita growth and immigration rates, highlighting the negative impact of high immigration on productivity.
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Household Wealth Decline:
Source: Butler CA
.webp)
Description: These diagrams depict the decline in Australian household net wealth over recent years, with the strain on infrastructure due to high immigration
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