An accounting quirk, not policy: Dr. Allen on migration revamp

By Our Reporter
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Net overseas migration is artificially high at the moment because there aren’t the outgoing people leaving Australia: Dr Allen

Just a day after the Australian government unveiled its ambitious plan to phase down migration numbers, Dr. Liz Allen, a renowned expert in demography, education, and research, steps forward with a critical evaluation. Casting a spotlight on the recent policy announcement, she challenges assumptions about its impact on Australia’s net overseas migration (NOM). Dr. Allen, while recognising the policy’s intention to strengthen the immigration framework, brings attention to a crucial detail often missed in public discourse: the current spike in NOM figures owes more to statistical anomalies than to recent policy shifts. Her insights cut through the complexity of migration statistics, offering a fresh perspective in the aftermath of the pandemic.

Dr. Allen acknowledges the positive steps taken by the government to bolster the integrity of Australia’s immigration system. However, she cautions against misinterpreting the impact of these measures on the country’s net overseas migration figures. Contrary to some media reports suggesting a halving of NOM, Dr. Allen asserts this is merely an “accounting quirk” rather than a direct consequence of policy shifts.

The current high level of NOM, as explained by Dr. Allen, is an anomaly resulting from the disruption caused by the COVID-19 pandemic. During the peak of the pandemic, there was an unusual exodus from Australia, leading to an excess of outmigration. This unusual pattern, combined with the subsequent pause in regular migration flows, has inflated the NOM figures temporarily.

Dr. Allen elucidates that the calculation of NOM includes both incoming and outgoing migration. The pandemic effectively reset the NOM calculation, leading to the current elevated figures. However, as normal migration patterns resume, Dr. Allen anticipates that NOM will organically revert to pre-COVID levels without direct government intervention. This natural readjustment, in her view, contradicts the narrative that the government’s policies are the primary drivers of reduced NOM.

This perspective offers a stark contrast to the media portrayal of the government’s policy as a significant factor in reducing migration numbers. The Australian government yesterday announced its new migration strategy, which emerged from Dr. Martin Parkinson’s comprehensive review. This strategy, encompassing 25 innovative commitments, represents a fundamental shift in Australia’s immigration policy.

The government’s strategy aims to methodically reduce net migration from the record high of 510,000 last year to 250,000 by 2025. This planned reduction aligns with the Labor party’s policy to lower migration levels and addresses socio-economic issues such as workforce shortages and the inflation and rental crises.

Central to this strategy are heightened English language requirements for student and temporary graduate visas, a move designed to enhance the quality of incoming talent. Additionally, the strategy introduces measures like the “genuine student test” and a new prioritisation system for student visa applications. These measures aim to filter out non-genuine applicants and improve the integrity of the migration process.

The government is also introducing a “specialist skills pathway” visa for highly skilled workers, albeit with stringent criteria including a minimum salary requirement. This pathway is expected to contribute significantly to the Australian economy.

In light of these policy changes, Dr. Allen’s insights serve as a reminder of the complexity underlying migration statistics and the need to critically assess the impact of governmental policies. Her analysis suggests that while the government’s new strategy is a step towards addressing various socio-economic challenges, the anticipated reduction in NOM may not be solely attributable to these policy changes. Instead, it may be a natural recalibration following the unprecedented disruptions caused by the COVID-19 pandemic.

Dr. Allen’s commentary not only provides a nuanced understanding of the current migration trends but also underscores the importance of viewing governmental policies within the broader context of external factors, such as the pandemic’s impact. Her expert analysis invites a more informed and balanced discussion on the future of Australia’s immigration system and its role in shaping the nation’s socio-economic landscape.


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