Australia raises permanent migration numbers to lure skilled employees from overseas

The government hopes to speed up its visa processing and see 'thousands of' nurses, engineers settle in the country this year

By Agencies

Published: Fri 2 Sep 2022, 8:19 AM

Last updated: Fri 2 Sep 2022, 8:20 AM

Australia will increase its permanent immigration numbers by 35,000, making it 195,000 in the current financial year, as it looks to shift its focus toward long-term migrants — bringing some relief for businesses battling widespread staff shortages.

Australia had closed its borders for about two years during the height of the Covid-19 pandemic, but those strict rules, as well as an exodus of holiday workers and foreign students, left businesses struggling to find staff and keep their businesses afloat.

"Covid is presenting us, on a platter, with a chance to reform our immigration system that we will never get back again. I want us to take that chance," said Home Affairs Minister Clare O'Neil to a government jobs summit on Friday.

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"Based on projections, this could mean thousands more nurses settling in the country this year; thousands more engineers," she added.

Australia's unemployment rate is now at a near 50-year-low of 3.4 per cent, but soaring inflation means real wages are down.

Businesses have been urging the government to raise the cap on annual immigration from 160,000, prompting it to make temporary changes to fill the labour gap.

The recently elected centre-left Labour government convened the two-day summit in Canberra (the national capital), inviting business groups and unions to help find solutions to key economic challenges.

Australia has been competing with other developed economies to lure more skilled employees from overseas, with many countries looking to ease immigration rules.

However, a blowout in visa processing times in Australia has left about a million prospective workers stuck in limbo, worsening the staff shortage crisis.

O’Neil said many of the “best and brightest minds” were choosing to migrate to Canada, Germany and Britain instead of Australia.

She described Australia’s immigration program as “fiendishly complex”, with more than 70 unique visa programs.

The government will soon establish a panel to rebuild its immigration program in the national interest, she said.

Prime Minister Anthony Albanese announced on Thursday, the first day of the Jobs and Skills Summit, that 180,000 free places would be offered in vocational education schools next year at a cost of A$1.1 billion ($748,000) to reduce the nation's skills shortage.

Australia imposed some of the strictest international travel restrictions of an democratic country for 20 months early in the pandemic and gradually reopened to skilled workers from December last year.

"We understand that when people wait and wait, the uncertainty can become unmanageable," Immigration Minister Andrew Giles told the summit.

"This is not good enough, and reflects a visa system that has been in crisis."

In a bid to speed up visa processing, Giles said the government would spend A$36.1 million ($25 million) to beef up its staff capacity by 500 people, for the next nine months.

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