Advertisements
High immigration is responsible for suppressing wages, as the Australian economy is growing slowly since the global financial crisis ten years ago. Salaries in the year to June grew by just 2.3 percent - nearly half the level of 4.3 percent a decade ago.
Advertisements

High immigration is responsible for suppressing wages, as the Australian economy is growing slowly since the global financial crisis ten years ago.

There are fears that it can get worse, with the Digital Finance Analytics research group that 40 percent of Australian house prices fall when there is another global shock that causes a recession.

Salaries in the year to June grew by just 2.3 percent – nearly half the level of 4.3 percent a decade ago.

High immigration is responsible for suppressing wages, as the Australian economy is growing slowly since the global financial crisis ten years ago. Salaries in the year to June grew by just 2.3 percent - nearly half the level of 4.3 percent a decade ago.

Advertisements

High immigration is responsible for suppressing wages, as the Australian economy is growing slowly since the global financial crisis ten years ago. Salaries in the year to June grew by just 2.3 percent – nearly half the level of 4.3 percent a decade ago.

Since the beginning of 2013, wages have not risen to more than three percent.

In the meantime, immigration levels have continued to rise with a record 848,570 people moving to Australia in the year to May, which means an annual increase of 5.7 percent.

After the departure was taken into account, Australia's net immigration rate was 294,430 – or a level that was more than four times the 20th century average of 70,000.

This number included permanent arrivals, skilled migrants and international students who have been studying in Australia for several years.

Advertisements

Head of Digital Finance Analytics Martin North, an economist, said that high immigration helped reduce wages because companies were looking under pressure to save costs.

& # 39; It's one of the factors & # 39 ;, he said to Daily Mail Australia on Tuesday.

& # 39; Companies have been under some pressure themselves, so they tend to anchor wages as one of the manageable costs.

& # 39; They went long, nowhere. & # 39;

Although many foreigners are skilled migrants with a higher wage, a larger number are also low-skilled workers in industries with low wages.

In the meantime, immigration levels have continued to rise with a record 848,570 people moving to Australia in the year to May, which means an annual increase of 5.7 percent. After the departure was taken into account, Australia's net immigration rate was 294,430 - or a level that was more than four times the 20th-century average of 70,000 (pictured is Sydney City Hall Station)
Advertisements

In the meantime, immigration levels have continued to rise with a record 848,570 people moving to Australia in the year to May, which means an annual increase of 5.7 percent. After the departure was taken into account, Australia's net immigration rate was 294,430 - or a level that was more than four times the 20th-century average of 70,000 (pictured is Sydney City Hall Station)

In the meantime, immigration levels have continued to rise with a record 848,570 people moving to Australia in the year to May, which means an annual increase of 5.7 percent. After the departure was taken into account, Australia's net immigration rate was 294,430 – or a level that was more than four times the 20th-century average of 70,000 (pictured is Sydney City Hall Station)

"More people are coming in who are willing to work for relatively low wages and that is probably also correlated with the mix of jobs being offered," said Mr. North.

& # 39; The bedpan economy, people working in health care, the elderly care sector – many of them are low-paid jobs. & # 39;

Although Australia's unemployment rate is low by 5.2 percent by historical standards, Mr. North said there was still a large pool of unemployment, keeping wages low.

Advertisements

& # 39; The decisive factor for me is this move towards less formal employment – so part-time work, zero contractures and jobs in the gig economy, & # 39; he said.

Australia's economic growth rate in the year to June amounted to only 1.4 percent, the weakest rate since the GFC in 2009, although interest rates have reached a low of one percent.

Although many foreigners are skilled migrants with a higher wage, a larger number are also low-skilled workers in industries with low wages such as nursing and care for the elderly

Although many foreigners are skilled migrants with a higher wage, a larger number are also low-skilled workers in industries with low wages such as nursing and care for the elderly

Although many foreigners are skilled migrants with a higher wage, a larger number are also low-skilled workers in industries with low wages such as nursing and care for the elderly

Since then, the economy has not been so slow since the end of 2000 after the introduction of the goods and services tax.

Advertisements

Noord said the government depended on strong population growth to prevent the economy from slipping into recession for the first time in nearly three decades, causing a peak in unemployment.

& # 39; I have no doubt that one of the reasons why the government, despite what it says, unofficially encourages migration, & # 39; he said.

& # 39; It's the only leverage they have. & # 39;

If an international crisis were to occur, Mr. North predicted that house prices in Australia would fall by 40 percent, which is what happened in Ireland and the United States from 2007.

If an international crisis were to occur, Martin Finance, head of Digital Finance Analytics, predicted that house prices in Australia would fall by 40 percent, following what happened in Ireland and the United States in 2007 (houses are in Sydney)

If an international crisis were to occur, Martin Finance, head of Digital Finance Analytics, predicted that house prices in Australia would fall by 40 percent, following what happened in Ireland and the United States in 2007 (houses are in Sydney)

Advertisements

If an international crisis were to occur, Martin Finance, head of Digital Finance Analytics, predicted that house prices in Australia would fall by 40 percent, following what happened in Ireland and the United States in 2007 (houses are in Sydney)

To put that in perspective, that kind of decline would be more than double the 17.5% slump in the average Sydney house price in the two years after they peaked in July 2017.

& # 39; If we get a global crisis – US, China or wherever it comes from – I predict that there could be 40% falls like Ireland, like Florida, like parts of the UK, & # 39; said Mr. North.

& # 39; The foundations that we are dealing with here are actually all negatives. & # 39;

In the United States, three-quarters of the economists questioned by the National Association for Business Economics last month expected the US economy to be in recession by 2021.

Advertisements

& # 39; If an international situation emerges when that happens, all bets are eliminated and I think we are going to see very significant falls in house prices, & # 39; said Mr. North.

. (TagsToTranslate) Dailymail (t) news (t) immigration