Australia’s migration boom crushed productivity growth

When the pandemic first arrived on Australia’s shores in early 2020, it set off a fascinating economic experiment on a grand scale: what would productivity growth look like without not only high migration but no migration at all?

In principle, migration should significantly boost productivity, as the government can select the best and brightest individuals to come to Australia, thereby improving our society and making our nation more prosperous.

In decades now long gone, this scenario was largely the case, with generations of migrants playing a major role in building the infrastructure and homes that underpin modern Australia.