Invest
‘Skilled migrants are key for future economic growth’: Frydenberg
Projections about the size of the Australian economy are set to be redrafted, with the country now very unlikely to meet population growth targets tailored prior to the pandemic.
‘Skilled migrants are key for future economic growth’: Frydenberg
Projections about the size of the Australian economy are set to be redrafted, with the country now very unlikely to meet population growth targets tailored prior to the pandemic.
On a recent exclusive podcast hosted by Momentum Media, Treasurer Josh Frydenberg confirmed that while Australia’s closed border policy saved lives, it also led to a stall in population growth to a degree not witnessed in a century.
This prolonged drought of immigration will, he confirmed, yield further consequences on the economy.
“Net overseas migration has gone negative,” Mr Frydenberg said.
“And so, while we’ll pick up our immigration levels into the future, we may not necessarily pick up the numbers of people who otherwise would have come if the borders had remained open over the course of the pandemic, which means that our projections about the size of the Australian economy will have to change, and the size of the population will have to change.
“And the size of our population will not be as big as what we’d forecast previously pre-pandemic at a certain period of time.”
He stressed the importance of skilled migration to Australia’s economic recovery.
“There were skilled shortages that we’re seeing across the economy and in construction, some of the mining sectors, engineering, I speak to a number of professional services firms in respect to IT, and some of those workers as well,” the Treasurer said.
“So, we have seen labour force shortages across various sectors of the economy and, therefore, being able to bring in skilled migrants is going to be important for our economic growth into the future.”
Just this week, the former treasurer of NSW and current Premier, Dominic Perrottet, drew attention to the importance of opening international borders to plug the “general labour” shortage and ensure a healthy economic recovery.
“If we lose this opportunity, those skilled migrants will go to other countries,” Premier Perrottet said on Tuesday.
And the stats back the government’s findings, with data from the Australian Bureau of Statistics (ABS) showing that job vacancies sat at 46 per cent above pre-pandemic levels in August.
“There were 334,000 job vacancies in August 2021, which was 36,000 less than in May 2021. However, this was still 106,000 more than at the start of the pandemic,” Bjorn Jarvis, head of labour statistics at the ABS, said at the end of September.
However, despite these sombre findings, the Treasurer is “pretty optimistic about where the economy is going”.
“As restrictions ease, we will see people back in work, and we’ll see businesses reopen and monetary policy will stay accommodative,” the Treasurer told Momentum Media.
“I’m optimistic and upbeat about the future prospects of the Australian economy.”
RELATED ARTICLES
About the author
About the author
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
Australian and Korean leaders meet to unlock billions in new trade opportunities
In a significant effort to bolster economic ties and explore new avenues for investment, Australian and Korean leaders, alongside business executives and government officials, are gathering in Seoul ...Read more
Economy
Australia’s growth beat is real — but it’s the wrong kind for capacity
Australia’s economy outpaced forecasts in the June quarter as households opened wallets and government spending did the heavy lifting, even as public investment sagged. The signal for boardrooms: ...Read more
Economy
Australia’s growth is back—but it’s the wrong kind of strong
GDP surprised on the upside in the June quarter, powered by households and government outlays even as public investment slumped. The Reserve Bank stayed hawkish, signalling that sticky services ...Read more
Economy
Australia's Economic Resilience: Strong GDP growth challenges RBA's policy stance
In a surprising turn of events, Australia's economy has shown greater resilience than anticipated, with the latest Q2 GDP report revealing a stronger performance largely driven by vigorous household ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
