Immigration needed to prevent skills shortage

An increase in Australia's immigration intake from 190,000 to 220,000 in the 2014-15 financial year has been proposed by the Australian Industry Group (AIG).

The boost is suggested to focus on skilled migration in order to mitigate current and future skills shortages. The submission was presented to the federal Government on 13 January.

AIG Chief Executive Innes Willox said the proposal has taken into account the economical benefits to the economy of a strong migration program.

"An increase in migrant numbers supports positive growth in our population and especially in our adult workforce, which is important due to relatively low rates of natural population growth," says Mr Willox.

He went on to mention Australia's low unemployment rates, the ageing workforce and its impact on the economy, and skill shortages in key industries such as engineering, infrastructure and mining services.

"With early indicators suggesting a positive upturn in national housing market activity, we expect the residential and commercial construction cycles will pick up significantly from 2014-15 which will in turn lead to further skilled trade shortages," says Mr Willox.

AIG emphasises the need to upskill the current workforce as a priority while bringing in skilled migrants.