Australia's migration system could be in for a major overhaul to deal with both short and long-term skills shortages.
The parliamentary Joint Standing Committee on Migration has begun a number of public hearings in their inquiry into how the Australian migration system can better fill growing skills and labour shortages throughout the economy.
The Grattan Institute recommends raising the migration cap but says the committee needs to target young, highly-skilled migrants rather than simply using low-skilled migrants to plug labour shortages in the short-term.
Deputy Program Director of Migration and Labour Markets for the Grattan Institute, Trent Wiltshire, says Australia's migration program has worked well in the past but is in dire need of a strategic re-think.
"Australia's migration program is a critical economic lever and it's previously held up as one of the best in the world, but the outcomes of the past decade or so have declined. So we've seen lower skilled people come here on skilled visas, we've seen some of the purposes of other visas depart from their initial purpose. So we think this is a really good opportunity to rethink the programme and to start to really focus those permanent skilled visas on the highest skilled, young, talented people that we can and that's gonna provide the biggest fiscal dividend as well as boost Australia's productivity growth."
Last year, the Federal Government's National Skills Commission highlighted a major skills shortage affecting the country in a report into the Australian workforce.
The inquiry received 117 submissions from major industry bodies, migration specialists, lawyers and professors.
The Australian Chamber of Commerce and Industry [[ACCI]] have thrown their support behind increasing the migration cap and broadening pathways for an increase in skilled migration.
Chief executive, Andrew McKellar says he believes using skilled migration to fill labour gaps is simply promoting a stronger Australian economy.
"Australia, to a large extent, has been built on a strong migration programme, we want to see that that continues, of course, we do have to make sure that there is correct balance in the programme. But it needs to be ambitious. And at a time, when we have many critical labour shortages, it can play a key role in promoting a stronger Australian economy."
While the government is being urged not to abandon local workers in favour of highly skilled migrants, the ACCI which is Australia's largest and most representative business association - believes that these interests are not mutually exclusive.
