No relation b/w immigration rates & Jobs for Australians

No relation bw immigration rates & Jobs for Australians

The latest study on the labor market in Australia has revealed that there is no relation between immigration rates and jobs for Australians. This is in terms of either lesser jobs or reduced wages. The study was financed by the Productivity Commission in Australia. The researchers were Robert Breunig, Nathan Deutscher, and Hang Thi. The study analyzed the relationship between Australian immigration and its impact on outcomes for labor market for Australia born workers.

The study elaborates that labor supply has been enhanced by immigration chiefly in those sectors where firms faced a shortage of workers. This is at the time of larger growth of the economy, as quoted by the Conversation. It is specifically true in recent years when Australia witnessed one of the unbroken periods of longest growth in the world history of developed nations.

Infrastructure is pressurized by immigration, but the issues are more a government function. It has failed to upscale and expand infrastructure even as immigrants pay taxes. The federal government is fond of stoking demand. The state governments are inactive in enhancing supply and these are the actual issues that are affecting housing affordability.

The economy is not a stagnant phenomenon. The factors that affect the decline in wages are rarely static. If the demand for labor increases notably more than the supply, that includes immigrants, then the wages will enhance.

This is the larger picture when one discusses Australian immigration and its impact on salaries. Large numbers of immigrants have become a static feature of the economy of Australia after the end of World War II if not earlier.

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Anshul Singhal

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