Immigration boom no real fix for an ageing population

Running high immigration intakes to counter the supposed problem of an ageing population was an economic myth, according to a new study, and the cost from environmental degradation due to development is real.

Running high immigration intakes to counter the supposed problem of an ageing population was an economic myth, a new study says.

The MacroBusiness Consulting report said that population ageing due to longevity was one of the greatest success stories of the modern era.

“However, it is widely thought to dramatically reduce workforce participation and overall output resulting in ­significant economic costs,” it said.

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Report authors Dr Cameron K. Murray and Leith van Onselen said that widely held view was wrong.

“Ageing countries have higher economic growth, and the improved health and ­longevity of older people increases their economic contributions,” they said.

Big business constantly calls for higher migrant intakes to deal with what is seen as an ageing population that needs more young workers to sustain economic growth.

Net overseas migration is now 259,600 and is expected to reach 271,700 in 2019-20, ­according to the federal government.

But the report said net migration levels above 50,000 to 80,000 permanent ­migrants per year “has almost no additional effect on changing the age structure and simply increases the total population”.

“Most of the increase in permanent migration since the early 2000s has been through the skilled migration program,” said their report, Three Economic Myths about Ageing in Melbourne and Australia: Participation, Immigration and Infrastructure.

A new report says a focus on skilled migration has fostered a ‘brain drain’ from developing countries. Picture: Ian Currie

“This program primarily benefits the migrants themselves and increases wage competition for other workers.”

The report said a focus on skilled migration fostered a “brain drain” from developing countries.

“There is a real cost from environmental degradation due to development to accommodate much higher populations,” it said.

The authors said that governments should reframe immigration as an environmental and ethical choice, not an economic necessity.

“Lower overall net immigration to the 50,000-80,000 range by mainly targeting skilled visas,” they said.

The report said that Australia’s humanitarian intake — due to be 18,750 in 2018-19 — should stay at that level.

“By slashing the skilled ­migrant intake by 76,000 and reducing family visas by 7000, Australia could easily reduce the non-humanitarian permanent migrant intake back to around 75,000,” it said.

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@JMasanauskas