AdviserVoiceMigrant numbers hit 4yr low despite tight job market https://www.adviservoice.com.au/2010/12/migrant-numbers-hit-4yr-low-despite-tight-job-market/ Financial planner information & financial planner education/CPD - AdviserVoice Thu, 04 Jun 2026 21:30:42 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Migrant numbers hit 4yr low despite tight job market https://www.adviservoice.com.au/2010/12/migrant-numbers-hit-4yr-low-despite-tight-job-market/ https://www.adviservoice.com.au/2010/12/migrant-numbers-hit-4yr-low-despite-tight-job-market/#respond Mon, 06 Dec 2010 00:20:10 +0000 https://adviservoice.com.au/?p=4682 Latest economic indicators
  • The job market is tight but permanent settler numbers have plunged. Net permanent and long-term arrivals to Australia hit 4-year lows in the year to October. In October alone, the number of permanent settlers in Australia plunged to 6½ year lows. Businesses are crying out for staff but the Government is failing to open the doors to new migrants.
  • The tourism gap has improved. Tourism arrivals have risen for six months in trend terms. Overall it appears that the tourism deficit has stabilised – at least for now.

What does it all mean?

  • Businesses are justifiably shaking their heads. Across Australia job markets are tight, with not enough local talent to fill positions. But while companies are crying out for staff, migrant numbers are plunging. Last year there were an extra 325,000 people coming to our shores to fill empty positions, but this year net entrants are closer to 210,000.
  • Certainly it’s not just the fact that in-bound migrant numbers have been cut back, it’s also the fact that more Australians are looking at opportunities abroad. But clearly that is a situation that government needs to keep on top of. Most recruitment agencies that the main constraint they face at present is lack of candidates.
  • If the Federal government believes it has a role in controlling migrant inflows, it needs to ensure that it isn’t exacerbating tightness in the job market. It is in the interests of all Australians to have a balanced job market. The last thing anyone wants to see is the Reserve Bank keeping interest rates at higher levels than they should be because restrictions on migrant inflows are pushing up wages and prices.
  • Over the past year, the annual number of migrants has plunged by a record 35 per cent, robbing the economy of momentum at an important time and keeping job markets tight.
  • The latest data shows that the tourism deficit is encouragingly not getting much worse, but unfortunately it’s not getting much better either. Tourism operators will have to continue to work hard to keep their heads above water. In talk of a two-speed economy, clearly mining and tourism are the two sectors that first come to mind.

What do the figures show?

Overseas arrivals/departures

  • Net permanent and long-term arrivals to Australia fell to 210,420 people in the year to October, down a record 35.2 per cent or 114,300 people on a year ago. Departures from Australia rose by 43,500 while arrivals plunged by 70,800.
  • The number of permanent settlers entering Australia in October stood at 9,370 – the lowest monthly total in 6½ years.
  • Tourist departures fell by 1.4 per cent in October to 598,400 after rising by 1.9 per cent in September and falling by 1.1 per cent in August. Tourist arrivals fell by 2.3 per cent in seasonally adjusted terms in October to 498,300 after gains of 1.4 per cent in September and 3.6 per cent in August.
  • In seasonally adjusted terms the tourism deficit – the gap between arrivals and departures – stood at 100,100 in October, up 3,600 in September but down from the record (34-year history) deficit of 126,300 in June.
  • In trend terms, tourism arrivals have risen for the past six months. Tourism departures have risen for the past 17 months in trend terms.

What is the importance of the economic data?

  • The Australian Bureau of Statistics releases data on overseas arrivals and departures is produced monthly and is an indicator of the health of the tourism sector.

What are the implications for interest rates and investors?

  • If last year over 300,000 more foreigners came to our shores for work and this year it’s closer to 200,000, clearly this will have an impact on housing demand and spending. The record drop in migrant numbers is one of the reasons that the economy barely grew over the last quarter.
  • Each month there are over 100,000 more Aussies travelling abroad than foreign tourists coming to our shores. Just like the situation with permanent migration flows, the imbalance in tourism has multiplier effects on the economy. The good news is that the tourism deficit appears to be stabilising.

Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither Commonwealth Bank of Australia ABN 48 123 123 124 nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.

The report has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. In the case of certain securities Commonwealth Bank of Australia is or may be the only market maker.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 a wholly owned but not guaranteed subsidiary of Commonwealth Bank of Australia. This report is approved and distributed in the UK by Commonwealth Bank of Australia incorporated in Australia with limited liability. Registered in England No. BR250 and regulated in the UK by the Financial Services Authority (FSA). This report does not purport to be a complete statement or summary. For the purpose of the FSA rules, this report and related services are not intended for private customers and are not available to them.

Commonwealth Bank of Australia and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report.

]]> Latest economic indicators
  • The job market is tight but permanent settler numbers have plunged. Net permanent and long-term arrivals to Australia hit 4-year lows in the year to October. In October alone, the number of permanent settlers in Australia plunged to 6½ year lows. Businesses are crying out for staff but the Government is failing to open the doors to new migrants.
  • The tourism gap has improved. Tourism arrivals have risen for six months in trend terms. Overall it appears that the tourism deficit has stabilised – at least for now.

What does it all mean?

  • Businesses are justifiably shaking their heads. Across Australia job markets are tight, with not enough local talent to fill positions. But while companies are crying out for staff, migrant numbers are plunging. Last year there were an extra 325,000 people coming to our shores to fill empty positions, but this year net entrants are closer to 210,000.
  • Certainly it’s not just the fact that in-bound migrant numbers have been cut back, it’s also the fact that more Australians are looking at opportunities abroad. But clearly that is a situation that government needs to keep on top of. Most recruitment agencies that the main constraint they face at present is lack of candidates.
  • If the Federal government believes it has a role in controlling migrant inflows, it needs to ensure that it isn’t exacerbating tightness in the job market. It is in the interests of all Australians to have a balanced job market. The last thing anyone wants to see is the Reserve Bank keeping interest rates at higher levels than they should be because restrictions on migrant inflows are pushing up wages and prices.
  • Over the past year, the annual number of migrants has plunged by a record 35 per cent, robbing the economy of momentum at an important time and keeping job markets tight.
  • The latest data shows that the tourism deficit is encouragingly not getting much worse, but unfortunately it’s not getting much better either. Tourism operators will have to continue to work hard to keep their heads above water. In talk of a two-speed economy, clearly mining and tourism are the two sectors that first come to mind.

What do the figures show?

Overseas arrivals/departures

  • Net permanent and long-term arrivals to Australia fell to 210,420 people in the year to October, down a record 35.2 per cent or 114,300 people on a year ago. Departures from Australia rose by 43,500 while arrivals plunged by 70,800.
  • The number of permanent settlers entering Australia in October stood at 9,370 – the lowest monthly total in 6½ years.
  • Tourist departures fell by 1.4 per cent in October to 598,400 after rising by 1.9 per cent in September and falling by 1.1 per cent in August. Tourist arrivals fell by 2.3 per cent in seasonally adjusted terms in October to 498,300 after gains of 1.4 per cent in September and 3.6 per cent in August.
  • In seasonally adjusted terms the tourism deficit – the gap between arrivals and departures – stood at 100,100 in October, up 3,600 in September but down from the record (34-year history) deficit of 126,300 in June.
  • In trend terms, tourism arrivals have risen for the past six months. Tourism departures have risen for the past 17 months in trend terms.

What is the importance of the economic data?

  • The Australian Bureau of Statistics releases data on overseas arrivals and departures is produced monthly and is an indicator of the health of the tourism sector.

What are the implications for interest rates and investors?

  • If last year over 300,000 more foreigners came to our shores for work and this year it’s closer to 200,000, clearly this will have an impact on housing demand and spending. The record drop in migrant numbers is one of the reasons that the economy barely grew over the last quarter.
  • Each month there are over 100,000 more Aussies travelling abroad than foreign tourists coming to our shores. Just like the situation with permanent migration flows, the imbalance in tourism has multiplier effects on the economy. The good news is that the tourism deficit appears to be stabilising.

Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither Commonwealth Bank of Australia ABN 48 123 123 124 nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.

The report has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. In the case of certain securities Commonwealth Bank of Australia is or may be the only market maker.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 a wholly owned but not guaranteed subsidiary of Commonwealth Bank of Australia. This report is approved and distributed in the UK by Commonwealth Bank of Australia incorporated in Australia with limited liability. Registered in England No. BR250 and regulated in the UK by the Financial Services Authority (FSA). This report does not purport to be a complete statement or summary. For the purpose of the FSA rules, this report and related services are not intended for private customers and are not available to them.

Commonwealth Bank of Australia and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report.

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