Economic impacts of migration and population growth: Productivity Commission position paper

The Productivity Commission, at the request of the Australian Government, has undertaken a research study on the productivity and economic impacts of migration and population growth. This study examined: the nature of international migration flows; the impacts of migration on the skill levels of the Australian population and in industries and occupations; the relationships between migration and population growth and workforce diversity; the ways in which migration and population growth impact on productivity; the legislative and other impediments which prevent Australia from realising...  [+] Show more

The Productivity Commission, at the request of the Australian Government, has undertaken a research study on the productivity and economic impacts of migration and population growth. This study examined: the nature of international migration flows; the impacts of migration on the skill levels of the Australian population and in industries and occupations; the relationships between migration and population growth and workforce diversity; the ways in which migration and population growth impact on productivity; the legislative and other impediments which prevent Australia from realising potential productivity gains from migration and population growth; and the impact of migration and population growth on labour force participation and economic growth more broadly. This paper provides: an overview of recent international and Australian migration and population trends; outlines the economic framework for the study; looks at the effects of changes in labour supply, labour productivity, and growth in population size and the economy, as well as other economic effects of migration and population growth; provides an overall assessment of the impact of migration on living standards; and examines legislative and other impediments to productivity and economic growth from migration. Key points include: recent changes to Australia’s migration program include a greater emphasis on skills, increased numbers of temporary immigrants, and more diversification in the country of origin; while the number of Australians leaving this country, permanently and long-term, has risen markedly in recent years, this number has been considerably fewer than those coming to Australia; migration has increased the absolute size of the population and economy; and the greater emphasis on skills in Australia’s migration program has been associated with better labour market outcomes for migrants.

Documents from this study are indexed from TD/TNC 85.409 to TD/TNC 85.412.