Migration levels won’t return to normal for years, treasurer says

Josh Frydenberg has accepted Covid changed the economy permanently as he revealed migration levels will take years to return to pre-pandemic levels.

The number of temporary workers in Australia is rising more quickly than expected but migration levels will still take years to return to pre-pandemic levels, Josh Frydenberg has said.

In an interview with News Corp Australia ahead of the budget to be delivered a week on Tuesday, the Treasurer has also flagged official predictions of unemployment rate before the end of the year and that government expects the current move to regions from the country’s capital cities to be a permanent change that will need government investment.

Mr Frydenberg said the aim of the budget was to respond to the immediate challenges – “cost of living, Covid, our flood response” while making substantial new investments in “skills, infrastructure, regions manufacturing, digital economy and energy”.

There will also be “significant investments in national security” as well as a big improvement in the budget bottom line on the back of surging commodity prices.

Treasurer Josh Frydenberg revealed what’s ahead for the federal budget. Picture: NCA NewsWire/Gary Ramage

Since the last budget update in December the government has encouraged student and working Holiday Maker visa holders to return to Australia.

“This will see an earlier return in temporary workers in the near term to help address current workforce shortages caused by Covid-19,” he said, though net overseas migration however remains well below historical levels.

“This will mean that one of the enduring economic effects from of Covid-19 is likely to be a smaller overall population with 1.5 million fewer people after 10 years, than expected prior to the pandemic.”

Mr Frydenberg accepted Covid had changed the economy permanently.

“I think you’re going to see a lot faster digital adoption across the economy: we’re really seeing that with telehealth, Zoom meetings, people working from home and shopping online,” he said.

“What this budget will seek to do is strengthen our economy, post Covid, with our economic plan, which puts a real focus on regions: so telecommunications, infrastructure, transport infrastructure, health infrastructure, a real focus on digital adoption and adaption.”

The treasurer doesn’t believe CBDs are dying out. Picture: NCA NewsWire/Jeremy Piper

Mr Frydenberg said that did not mean that CBDs were finished.

“I think cities have a bright future but I just think more people will live and work in our regions,” he said.

The events in the Ukraine had only underlined the importance of domestic manufacturing that had already been highlighted by Covid.

“I think there’s going to be much greater emphasis now on sovereign manufacturing capability, particularly after what’s happened in Ukraine, and we were really already on that path and so we’re going to see more investments in supply chain resilience in this budget,” he said.

Help for youth

Young people who lack basic skills to make their way in the world will be targeted with a $46.8 million investment to try and get 5000 of them into education or work.

This months’s budget is set to include a new pre-employment program called ReBoot aimed at young people aged between 15 and 24 who lack the discipline and motivation to benefit from existing programs.

The aim is to develop their capability and sense of self-worth to enable them to undertake further education or an apprenticeship.

Treasurer Josh Frydenberg says young people will benefit from the budget. Picture Dean Martin

Treasurer Josh Frydenberg said Australia’s unemployment rate of 4 per cent had given the country a historic opportunity to get more people off welfare and into work.

“We want to ensure young Australians have access to the opportunities they need to thrive, but we know for some there can be some significant barriers, especially since the COVID-19 pandemic,” he said.

“Good physical and mental health, exercise and social connectedness are critical to maintaining wellbeing, resilience and the positive attitude necessary to overcome the challenge of long-term unemployment.”

ReBoot, will be particularly targeted at young people who have experienced family violence or the youth justice system.

It is hoped participants in the scheme will later be able to join other programs such as Youth Jobs PaTH, which aims to increase employability, skills training and work experience, and Transition to Work which offers intensive support for youth at risk of long-term unemployment.

Minister for Employment, Workforce, Skills, Small and Family Business and Acting Minister for

Education and Youth, Stuart Robert, said having a positive attitude to work and demonstrated reliability were the highest priority for employers looking to hire entry-level jobs

“Young people who do not exhibit characteristics such as a positive attitude and reliability are generally disengaged and not actively participating in employment or training pathways,” he said. Robert said.

“ReBoot will engage with disadvantaged and disengaged young Australians in initiatives of up to 12 weeks, to build their capability and aspirations.”

Mr Robert said the program will provide tailored, community-focused early interventions, which may range from hands-on learning and mentoring to work experience through engagement with industry.

“Participants will then be in a better position to engage with existing youth employment programs to continue their pathway to training or employment.”

A competitive procurement process will select expert not-for-profit organisations to deliver ReBoot which will begin in early 2023.