Australia expresses support for wage increases for temporary skilled migrants

Australian Skills and Training Minister Brendan O'Connor said on Sunday he was in favor of lifting the income threshold for some temporary migrants at a time when the government is trying to close widespread staff shortages across the country.

The issue of skilled migration was the focus of this week's government employment summit, where Prime Minister Anthony Albanese called for compromise between employers and unions to tackle the country's key economic challenges. The government announced on Friday that it will increase the intake of permanent migrants by 35,000 to 195,000 this financial year to help businesses with staff shortages and reduce reliance on short-term workers. Staff shortages have been exacerbated by the recent lengthening of visa processing times in Australia, leaving nearly one million prospective workers in limbo. Speaking to ABC television, O'Connor said the government would look at raising the Temporary Skilled Migration Income Threshold, which has been at A53,900 since 2013. "I think it should be removed," she said, declining to comment on whether the threshold should be raised to A$65,000, in line with the policy of the center-left Labor Party, which took over in May's general election. "These are complex issues and we need to work out how we deal with each sector," O'Connor added. Staff shortages in both high-skilled and lower-paid sectors, such as aged care, have been compounded by an exodus of holiday workers and foreign students after the COVID-19 pandemic closed Australia's borders for nearly two years. Australia's unemployment rate has fallen to a 50-year low of 3.4%, and the labor shortage has contributed to rising inflation, which has depressed real wages. Australia is locked in a battle with other developed economies such as Germany and Canada to attract more high-skilled migrants as the country's aging population drives demand. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!