In the lead-up to the 2022 election, the Australian Labor Party made a significant promise to the electorate: they would lower immigration levels to address mounting socio-economic pressures but less than three years into their term, the reality of their immigration policies has diverged starkly from their pre-election commitments, sparking widespread debate and criticism.
Because before assuming office (2022) Labor assured voters that reducing immigration would be a priority, which was a stance that resonated with many Australians concerned about housing affordability, job availability and infrastructure strain.
Yet, following their election victory, the Labor government enacted a series of measures that have significantly increased immigration levels.
Immigration: Key Policy Changes
Labor’s new immigration policies include:
- Increasing Permanent and Humanitarian Intakes: The permanent migrant intake was boosted by 30,000 and the humanitarian intake saw a rise of 7,000.
- Funding for Visa Processing: An allocation of $42 million was made to hire 500 additional staff at the Department of Home Affairs aiming to clear a backlog of 1 million visas.
- Extended Work Rights for International Students: The cap on working hours for international students was raised from 20 to 24 hours per week and the post-graduation work period was extended.
- More Visas for Low-Skilled Workers: There was an increase in permanent visas for low-skilled workers in sectors like agriculture and aged care.
- Migration Deals with India: Two agreements were signed with India to facilitate easier access for Indian nationals to study and work in Australia.
So contrary to initial projections, Australia has seen a significant surge in immigration.
And the Labor government’s October 2022 budget forecasted a net overseas migration of 235,000 for the financial years 2022-2024 but instead, the country recorded 1 million net overseas migrants in just 2022 and 2023, which far exceeded expectations and doubling the projected figures.
Hence, this dramatic increase has resulted in Australia achieving record levels of permanent, temporary and overall net migration.
So the surge in immigration has exacerbated Australia’s housing crisis and the increased demand for housing has intensified the rental market, pushing prices up and making affordability a pressing issue.
And some experts argue that this influx has fueled inflation and contributed to a worsening rental crisis, further deepening economic inequality.
But despite the rationale that high immigration would alleviate skill shortages, the opposite appears to be true…. and Australia’s skill shortages have worsened, even with the influx of migrants, with many skilled migrants face underemployment and lower wages compared to local workers.
Data from the Committee of Economic Development of Australia reveals that skilled migrants earn over 10% less than their local counterparts and a significant proportion of permanent migrants work in jobs below their skill level, highlighting inefficiencies in the current system.
A Call for Policy Reassessment
Labor’s ongoing narrative tell us that high immigration is essential to address skill shortages… but the evidence suggests that the policy has not only failed to solve these shortages but has also created new challenges.
So with a ballooning population (driven by record levels of net overseas migration) Australia faces a confluence of issues: a worsening housing crisis, persistent skill shortages and growing economic inequality.
And as Australia grapples with these challenges, there is a growing call for a reassessment of its immigration policies and Labor’s significant deviation from their pre-election promises has sparked a debate on the sustainability and efficacy of their approach.
So as the country navigates this complex landscape, the need for policies that align more closely with Australia’s socio-economic realities becomes ever more critical.
