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Economy

CEO Update: Migration debate needs evidence, not opinion

Migration is neither a silver bullet nor a scapegoat.

Migration has long been one of Australia’s most contested policy issues, notwithstanding the critical role it has played in enabling our economic development. 

There are legitimate community concerns about housing affordability, infrastructure capacity and pressure on essential services, but political narratives often oversimplify and overstate the role of migration. Migration should not be seen as a silver bullet to support economic growth nor should it be a scapegoat for broader problems and challenges.  

A productive national conversation must begin with evidence rather than opinion and conjecture. CEDA’s latest data report puts the evidence front and centre. It shows that migration has fallen sharply from post-COVID peaks reflecting moves by the Government to moderate net overseas migration and tighten aspects of international education and temporary visa systems while preserving migration's role in meeting important skills shortages. While net overseas migration remains higher than expected, this reflects lower departures not higher than expected arrivals.  

As we look to recalibrate migration settings in Australia, we should aim to build an approach that can be sustained, taking into account the composition as well as the size of intake, and focusing on how effectively migration is managed and integrated with housing, skills, infrastructure and population planning. Evidence-based debate is essential to achieving that balance and ensuring that migration contributes to productivity and real living standards, not simply a larger economy.  

For our part, CEDA will continue to advocate for a long-term migration strategy that responds to critical skills needs, includes an essential skills migration pathway to support the care sector and for improved skills recognition to enable migrants to make the most of their skills and experience.  

CEDA’s work remains guided by two key pillars – enabling a strong economy and a strong social compact. Both were in focus last week. 

In her annual address to the Annika Foundation, Reserve Bank Governor Michele Bullock emphasised the central role that productivity plays in bringing inflation back to a sustainable level. That relationship is why recent and upcoming CEDA research explores business dynamism, investment and regulatory burden – key drivers of long-term productivity performance. 

On the social compact front, last week brought disappointing news that once again Australia is falling short on its aspirations to Close the Gap. Of the 19 targets within the agreement, just four are being met or on track to be met. As outlined in our recent State of the Nation report, addressing these alarming trends requires genuine First Nations agency over the decisions that affect them. We are still a long way from that. 

Also last week, new Victorian Premier Ben Carroll announced a proposed amendment on WFH laws put forward by his predecessor Jacinta Allen. CEDA had previously spoken out against the need for legislation, based on our research that showed the benefits of WFH and that most employers were already providing flexibility. Our research seems just as relevant now as this topic is discussed again.

Join the conversation at the Shaping the Future of Aged Care QLD on September 1 to explore how providers can navigate reform implementation, rising compliance demands, workforce and financial pressures, while improving care access, quality and experience.

We are pleased to welcome Reserve Bank of Australia Governor, Michele Bullock, back to the CEDA stage on September 22 to discuss inflation, interest rates and insights into Australia’s economic outlook.

South Australia’s leading policymakers, educators and industry leaders will convene at Pathways to skills, jobs and growth on October 8 for a timely discussion on the future of skills, training and workforce pathways in the state.

Welcome to our new members Association of Superannuation Funds of Australia, Good Shepherd and Lochard Energy. Thanks for joining us.