Immigration into Australia highest in four years

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By Leith van Onselen

The Australian Bureau of Statistics (ABS) yesterday released visitor arrivals and departures data for the month of November, which revealed increases in both net long-term and permanent migration into Australia.

In the year to November 2013, there were 678,630 permanent and long-term arrivals into Australia – down slightly from the record 680,200 arrivals set in August – partly offset by 369,490 permanent and long-term departures from Australia (see next chart).

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There were 309,140 net permanent and long-term arrivals into Australia in the year to November 2013 – the highest level since November 2009 and representing a 55% increase from the January 2011 trough and more than double the long-run average (see next chart).

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However, while overall net long-term arrivals are booming, it is a different story for permanent migration. In the year to November 2013, permanent arrivals fell by 3% to 152,350, whereas permanent departures rose 3% to 91,940 – just off record highs (see next chart).

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That said, net permanent arrivals into Australia rose for the second straight month, which followed 13 consecutive months of decline, but are still tracking 7% below the long-run average (see next chart).

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As noted each month, a superficial look at the the ABS data suggests that much of the recent immigration into Australia has been temporary in nature. However, according to the Department of Immigration, around 30% of workers on temporary 457 visas end up becoming permanent residents, suggesting that actual permanent immigration remains at relatively high levels.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.