The Federal Government has slashed Australia's skilled migration intake to try to save Australian jobs from the impact of the global financial crisis.
Immigration Minister Chris Evans has announced a cut of 18,500 places in the skilled migration program this financial year.
''The Rudd Government will cut the 2008-09 permanent skilled migration program by 14 per cent to protect local jobs while ensuring employers can access skilled professionals in industries still experiencing skills shortages,'' he said.
''Last week cabinet agreed to cut the permanent skilled migration program in light of the worsening global economic situation. Clearly, the economic circumstances in Australia have changed ... so it is prudent to reduce this year's migration intake accordingly.''
Australia's jobless rate rose to a four-year high of 5.2 per cent last month but federal Treasurer Wayne Swan said yesterday that the unemployment rate would ''not necessarily'' reach 10 per cent by Christmas. Asked by ABC TV if the latest bad economic news would push unemployment that high, MrSwan said, ''I wouldn't be speculating along those lines. I don't necessarily think that that follows. But with this global recession and in the savagery of its impact, it can really have a substantial impact on employment in Australia.''
The Federal Government's current but likely to be revised forecast is for unemployment to reach 7 per cent next financial year.
Economists had warned that a cut to skilled migration was essential if the Government's $42billion economic stimulus package was to be effective in saving jobs. A Monash university demographer, Professor Bob Birrell, said last month, ''If the migration program is not cut sharply, the growth in migrant job-seekers will exceed the number of jobs the plan proposes to protect.''
Shortly after its election, the federal Labor Government significantly increased Australia's skilled migrant intake. In February last year Senator Evans announced a one-off increase of 6000 places in the 2007-08 intake. Then in the May 2008 budget the Government added 31,000 places to the 2008-09 program, bringing the total intake to 133,500, compared with the Howard government's planned intake of 102,500 for the previous financial year.
At the time Senator Evans said the large increase was essential to ease pressure on employers struggling with the skills shortage.
The skilled migrant intake for 2008-09 will now be 115,000, still a 12 per cent increase over the 2007-08 program.
Senator Evans has also announced significant changes to the structure of the program to remove building and manufacturing trades such as bricklayers, plumbers, welders, carpenters and metal fitters from the critical skills list that determines eligibility for entry without sponsorship from an employer.
The list will now comprise mainly health and medical, engineering and information technology.
Senator Evans said the list would remain under constant review and the Government would remove occupations if demand could be satisfied by local labour.
''The overwhelming message from business and industry is that Australia still needs to maintain a skilled migration program but one that is more targeted so that migrant workers are meeting skills shortages and not competing with locals for jobs,'' Senator Evans said.
''There are still skills shortages in some sectors, such as health-care, and these measures will enable industry to continue to source the skilled professionals they need while protecting local jobs ... ''
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