Temporary visa holders continue to “go home”

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The latest temporary visa data from the Department of Home Affairs showed that the number of temporary visa holders in Australia fell by 167,100 in the year to June 2020, as migrants have headed home following the COVID-19 pandemic:

Abul Rizvi has released data showing that temporary visa holders continued to go home in July:

The overall net movement, including Australian and New Zealand citizens and permanent residents, in July 2020 was negative 38,480.

For the four months March to July 2020, a net total of 137,770 temporary entrants have departed Australia. The major contributors to this outcome have been students at negative 34,780; visitors at negative 40,890; temporary work at negative 31,570; temporary other (mainly temporary graduates) at negative 26,430; and temporary skilled at negative 4,100.

Source: ABS Cat 3401

The significant developments in July were the large increase in student and temporary graduate departures leading to a net student outcome in July of negative 12,090 and a temporary other category outcomes in July 2020 of negative 10,550.

In addition, there was a negative movement of Australian and New Zealand citizens; as well as the negative movement of permanent skilled migrants (ie more left than arrived).

The overall international net movement outcome for the four months March to July was negative 110,730.

As much of the July outcome will contribute to net overseas migration, the Government’s forecast of net overseas migration for 2020-21 of positive 31,000 is looking increasingly optimistic.

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This is great news.

The whole purpose of Australia’s temporary visa program was to plug “skills shortages” across the economy and to provide flexibility.

That is, the migrant intake would expand when skills are needed, but then in times of economic dislocation and high unemployment temporary visa holders would return home. Accordingly, temporary visas were designed as a shock absorber for the Australian economy.

It is quite frankly ridiculous that in a country of less than 26 million people, we have around 2 million temporary visa holders in Australia, most with work rights.

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With Australia facing its biggest economic decline since the Great Depression, and unemployment and underemployment rife, having temporary visa holders remaining in Australia to compete against locals for scarce jobs makes no sense. Doing so would only worsen the unemployment queues and further depress wages, destroying Australia’s working class.

If temporary visa holders cannot find employment and cannot support themselves, they must return home.

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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.