Australia Increases Immigration Target for 2022-23 to address Labour Shortages

Australian government has raised the Permanent Migration Program ceiling from 160,000 to 195,000 in 2022-23, i.e. up by 35,000 in order to address the labour shortage issue and lessen the dependence on short-term workers. It is the first time in decades Australia has raised its permanent migration cap.

Australian Prime Minister Anthony Albanese has announced this rise in migration cap in the recent Jobs and Skills Summit. Australia is one among the first few countries, which have completely lifted all Covid-19 restrictions and inviting travellers from all parts of the world.

Permanent Migration Cap Raised by Australia

Apart from migration cap increase, Australia is also extending visas and relaxing work restrictions on foreign students to reinforce the pipeline of skilled labour, and providing extra funding to resolve the visa backlog.

The global pandemic forced the land down under to close borders for nearly 2 years; moreover, exit of holiday workers and foreign students left industries in Australia struggling to find staff to sustain operations. This rise in cap will certainly help businesses to meet skill shortage in the country.

The rise in cap will take effect for the present program year ending June 2023 and will bring migration target mostly in line with the annual cap of 190,000, which was few years back, i.e. before the pandemic hit.
Speaking about the decision about raising cap, Australian Prime Minister Anthony Albanese told reports, "It makes no sense to bring people in, have them for a few years, then get a new cohort in to adapt to the Australian work environment,”

"We want people ... to have a mortgage, to raise a family, to join the Australian family. Migration is part of our story."

Here are key points to take away from the latest update:

• Permanent migration cap has been raised by 35,000
• Change brought in for 1 year as of now
• Additional funds, staff for faster visa processing

Also read- Australia’s Skilled Migration Programs are Inviting Offshore Applicants for program year 2022-23

Skill Shortage in the country amid competition for global talent

The unemployment rate of Australia is at a near 50-year-low of 3.4% now, however, labour shortages have largely contributed to mounting inflation that has condensed real wages.

Australia has been competing with fellow developed economies, i.e. Canada and Germany, etc. to attract more high-skilled immigrants, with the rise in demand intensified by an ageing population.

Canada has immigration target to accept 431,645 new permanent residents this year, i.e. more than double of Australia's target. Moreover, Germany looking to reform its migration plan to make it more attractive to skilled professionals.

Hence, this rise in cap is certainly a step by Aussie government to survive global competition to lure global talent in the country and thus, meet the growing skill shortage issues.

The General Skilled Migration Program (GSM) of Australia follows a point system, with three point-tested skilled visa categories, i.e.

• Skilled Independent Visa Subclass 189- Permanent visa
• Skilled Nominated Visa Subclass 190- State nominated permanent visa
• Skilled Work Regional (Provisional) Visa Subclass 491- 5-year visa with an option to get permanent residency

To confirm your eligibility and apply for Skilled Permanent Resident (PR) Visa in Australia this year, you may contact Visas Avenue Australia Migration Expert on Toll-Free No. 78-18-000-777 or you can drop us an e-mail at info@visasavenue.com.

- Rajneesh Kumar