Journeying through nearly 25 years of economic growth sans any recession, Australia surely deserves a lot of plaudits owing to its fantastic prosperity stretch. While, there have been many talks and write-ups about Australia’s economic reforms back in 1980, that helped the country grip on this booming expansion, what remains overlooked or less talked about is migration. Migration played the role of a protagonist in fuelling the growth of GDP, striking Australia out of the recession list. Besides masking Australia’s recession, it has even eclipsed a dirty secret: individuals could still not draw any benefits from this record run.
As per recent discovery, Australia’s per capita income have slanted backward since the GFC, but truthfully speaking, migration in the country is still seen to proceed at an alarming clip. Even regarding visitor’s visa category cutting down from the temporary migration numbers, the total number of temporary migrants is seen to be sitting at around 1, 608, 460 i.e. a 4.3% rise annually. Record claims, there has been an exponential support for migration to Australia for the simple reason; more people would lead to increased economic activity which in turn would allow the Government to gloat over a better economic management.
But more people don’t ensure any better living standards. Instead, it tends to pose great threats to existing workers, goods and services for the detrimental economic effects it brings about. Thus, a huge migration might have held back Australia from falling into the pits of recession and proved extremely beneficial to all the business sectors, and Governments, owing to a large number of people working in it and the economic growth that appears better than before: but it is never good for the common workers.
Unemployment rise poses a threat to Australian economy
With Australia’s unemployment rate rising to 5.8% as per the recent show of figures due to the booming migration in the country, the education and training minister- Simon Birmingham claimed that the country’s economy have shown to remain resilient even in spite of global adversities, thus bagging the third position three times in a row, in terms of job growth, especially the full-time jobs.
Terming the labor market as “fragile’, Paul Dales-heading as the chief economist at the Capital Economics confirmed about the employment rate increasing by 0.8% than last year with full-time jobs lowered by 0.4% than the previous year and part-time jobs increment to 3.4%. Furthermore, he talked about the increased rate of part-time jobs restraining income growth and wage.