Australia Relaxes Visa Rules to Ease Unprecedented Labour Shortages

Australia has finished runner-up in a contest that no right-minded country would wish to compete for – the silver medal for the most severe labour and skills shortage in the world, bested only by Canada, according to the organization for Economic Co-operation and Development (OECD). The Australian Bureau of Statistics published data in July that showed there were as many job vacancies as unemployed people across the Australian continent.

In a move aimed at addressing the country’s unprecedented labour and skills shortages, the Prime Minister has lifted the number of permanent migration visas available for the 2022-23 period from 160,000 to almost 200,00. The increase is equivalent to around one per cent of Australia’s current population. It is impossible to overstate the significance of this decision.

Business interests have been lobbying for increased skilled migration for some time. But the political will to act was lacking, given the widespread community unease about immigration.

The pandemic has changed all that. The economic shock of the Covid-19 shutdowns have led to a sharp increase in unemployment. But at the same time, it has also created new labour shortages in specific industries and regions.

There are almost 400,000 job shortages in the country. The health care and social assistance sector has the most job openings (87,000), followed by construction (74,000) and education and training (39,000).

The Prime Minister’s decision to increase skilled migration is a welcome one. But it is only part of the solution. We also need to invest in training and reskilling our existing workforce. And we need to do more to attract international students to study in Australia.

Former Immigration Minister Alex Hawke said the visa changes would help address critical shortages in a range of industries, including construction, health care and aged care.

The government is also making it easier for foreign students to transition to permanent residency after they finish their studies. This is a welcome move, although hailed by many as a short-term fix for a long-term problem.

The pandemic has been a wake-up call. It has shown us just how dependent we are on skilled migration. We need to do more to attract and retain skilled workers to bolster our economy and our society.

The influx of workers is expected to alleviate the pressures faced by businesses across the country; however, this will also bring another set of problems to the forefront – where to house this influx of workers with the ongoing housing crisis across the country.

Rents have been rising rapidly in recent years, particularly in major cities like Sydney and Brisbane. This has made it increasingly difficult for young people and low-income earners to find affordable housing.

The federal government has promised to build more public housing in direct response to this situation. And at the state level, the Queensland government has recently announced a housing summit to tackle the ongoing crisis. It is hoped that the raft of measures being implemented will help ease the pressure on the economy and the housing market twofold.