Australia relies very heavily on migration; a significant amount of Australia’s exports are people-based (tourism, education and business services, etc) all of which have been heavily impacted by COVID-19.

The economic impact of migration flows through into every aspect of the economy. It has profound positive impact not just on population growth, but also on labour participation and employment, on wages and incomes, on our national skills base and on net productivity. Set out in terms of the three ‘Ps’ – participation, productivity and population, migration is a significant factor.

In the absence of a migration program, Australia’s projected population in 2050 will fall to 24 million (from 38 million). This population decrease takes away economic gains in and of itself, however the interaction of migration with our economic indicators is complex, and the returns go far beyond the benefits of simple population gain.

For too long the economic contribution of migration to Australia has been significantly undervalued. The COVID-19 slowdown of the present migration program is expected to demonstrate the critical role that migration will continue to play in Australia’s economic future and wellbeing. This highlights the need to ensure policy remains dynamic and is able to respond to changing global circumstances.