Cutting immigration creates a job harvest for Australia’s unemployed

The fact that Australian people have been far better off under the Commonwealth’s tight border controls has been a revelation. Compared to many other countries our public health and quality of life has been exceedingly better due to controlling arrivals from regions with high Covid-19 transmissions.

Because of the COVID pandemic, the government has been forced to cut immigration. The employment outcome has been a great win for Australian citizens.

Putting a stop to the over supply of temporary migrant workers

Since the implementation of Australia’s large scale temporary worker program, a growing number of Australia youth unemployed and lower skilled residents have had to deal with intense competition for local employment.

Before the Wuhan coronavirus arrived on our shores, temporary foreign visas holders had reached a peak of  2.4 million. The recent figure for March 2021 revealed temporary entrants had fallen to 1.7 million.

The curtailing of the rapid growth of temporary and permanent migrants into Australia has been an enormous benefit to young Australians. A welcome reprieve from the oversupply of low skilled foreign workers over the past decade.

A record 633,000  foreign students with work permits were in Australia before the pandemic. This dropped to 377,000 by March 2021.

Foreign student arrivals declined by 99.6% in March 2021, compared to March 2020.

Australia’s low unemployment is attributable to this remarkable shift in Federal immigration policy. Youth unemployment rate fell to its lowest level since the Global Financial Crisis.

This is proof positive that the collapse in immigration is benefiting Australia’s youth.

Western Australian workers are reaping the rewards of the Morrison’s government’s pause in the very large overseas migration program.

It would be inconceivable for the Federal government to continue with their huge migration program. Large cuts to immigration have been positive – youth unemployment dropping to its lowest level since the Global Financial Crisis. The direct link between high youth unemployment and mass migration is now evident.

Chart 1 highlights the significant decline in WA youth unemployment since the postponement of migration programs. And the impressive reduction in total unemployment to less than 5%.

(Source: Australian Bureau of Statistics, Labour Force, Australia, Released 20/05/2021)

Notes: Youth data is original, total unemployment is seasonally adjusted

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