Australia increases migration target amid labour shortage

In an effort to assist businesses and industries dealing with severe staff shortages and lessen reliance on temporary employees, Australia on Friday increased its intake of permanent migrants to 195,000 for this fiscal year, an increase of 35,000.

The COVID-19 outbreak, together with a mass exodus of international students and seasonal workers, forced the country’s borders to remain closed for over two years, leaving businesses struggling to recruit staff to stay afloat.

On the sidelines of a government jobs meeting in Canberra, Prime Minister Anthony Albanese told reporters, “It makes no sense to bring people in, have them for a few years, then get a fresh cohort in to adjust to the Australian work climate.

“We want people to raise families, get a mortgage, and become a part of the Australian community. We all have a migration story.”

The increase will go into effect for the current fiscal year that ends in June 2023, bringing Australia’s immigration objective broadly in line with the 190,000 annual cap that was in place from 2013 to 2019.

Just a few months prior to the introduction of COVID-19, that threshold was reduced by 15% to 160,000 in an effort to reduce urban congestion. The administration made no more mention of figures.

The two-day summit was organised by the recently elected center-left Labor government, which also invited industry associations and labour unions to assist in finding answers to pressing economic problems.

Australia’s unemployment rate is currently 3.4%, which is close to a 50-year low, but labour shortages have fueled skyrocketing inflation that has lowered real earnings.

“We are being given an opportunity to improve our immigration system that we will never get back through COVID. I want to take that opportunity with you “Minister of Home Affairs Clare O’Neil spoke at the meeting.

With an ageing population exacerbating the increase in demand, Australia has been competing with other sophisticated countries like Canada and Germany to entice more high-skilled immigrants.

Canada announced last month that it was on course to surpass its aim of giving permanent residency to more than 430,000 people this year, which is more than double Australia’s ambition. Germany has announced steps to increase its attractiveness to talented workers.

However, the staff shortage situation has gotten worse as a result of a blowout in visa processing delays in Australia, which has left about a million potential employees in limbo.

Immigration Minister Andrew Giles told the meeting, “We recognise that when individuals wait and wait, the uncertainty may become overwhelming. This is unacceptable and represents a visa system that has long been in disarray.

Giles announced that the government will invest A$36.1 million ($25 million) to increase its staff capacity by 500 workers over the course of the next nine months in an effort to speed up the visa application process.

Companies applauded the government’s initiatives.

Innes Willox, CEO of the Australian Industry Group, stated that “we are in a worldwide battle for the world’s top talent and the more hurdles we remove from the system the greater opportunity we will have of recruiting the greatest people.”

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