Why doesn't Australia have local labour market tests?

From The Australian:

MORE jobs could be preserved if the Rudd Government introduced a local labour test before allowing employers to sponsor migrant workers in permanent jobs, a top demographer said yesterday.

Bob Birrell, from Monash University's Centre for Population and Urban Research, said the Government's decision on Sunday to cut the annual intake of skilled migrants by 18,500, or 14 per cent, over the next three months was necessary in tough economic times.

The downturn's severity has forced the Government to remove construction workers, including plumbers, bricklayers and carpenters, from the list of skilled workers employers can bring in on the 457 visa scheme.

"It's a significant policy shift because it implies the Government will restrict skilled migrant programs to employer-nominated permanent jobs and what remains on the critical skills list," Professor Birrell said.

"But the way the rules are written, there is no requirement an employer establishes that before he sponsors a migrant no one in the domestic labour market could do it," he said. "In 2007, there were over 8000 such permanent jobs, and while some were high-end corporate-type sponsored jobs, many weren't."

Others were less convinced of the need for such a sharp cut in skilled migrant numbers, although Immigration Minister Chris Evans said he would go deeper if the downturn warranted.

However, Senator Evans said he did not anticipate further cuts to the program this financial year.

"I think the cabinet will make a decision on next year's program as part of the budget and again, I would expect us to run a smaller program than we started out with this year," he said.

One of Kevin Rudd's closest allies in the business community, Australian Industry Group chief executive Heather Ridout, said now was not the time to cut back.

"While pressures are building on employment, shortages remain critical in a number of skilled trades," she said.

Australian National University demographer Peter McDonald was also wary. "A 14 per cent reduction in the current economic climate is understandable and manageable, but the Government needs to bear in mind the importance of migration to meet long-term skilled labour demand, particularly when the country starts to pull out of its financial difficulties," he said.

ACTU president Sharan Burrow described the decision to cut the quota as prudent, given the economic conditions.

"It's a chance to get the balance right to make sure that there is optimism to be able to get a job, earn a living wage for migrant workers," she said.

Perth builder Gerry Hanssen said his 457 workers helped his business through the boom and he believed their contribution to the state entitled them to stay.

Among them is welder Daniel Gucor, who came to Perth from The Philippines three years ago and dreams of citizenship.

Foreman Senan Amjedi-Effendi made Mr Gucor his employee of the month a few weeks ago and says the 28-year-old "is worth 10 other workers".

Why doesn't Australia have any labour market tests? While other immigrant-receiving countries require labor market tests and/or strict quotas before admitting overseas workers, Australia doesn't. These lax requirements mean that the system is wide open to exploitation by employers seeking access to cheap labour. Such easy access to foreign labour not only serves to drive down domestic wages, it also acts as a disincentive to recruiting and training Australian workers. Access to a never-ending stream of foreign workers also serves as a disincentive to labour saving investment. The same labour saving investment which drives innovation and productivity, both of which are sorely lacking in Australia at the moment.

Also take note how immigrant minorities prefer their own kind over native-born Australians. Senan Amjedi-Effendi, himself obviously coming from an immigrant minority background, claims that Philippino immigrant Daniel Gucor is worth ten (presumably Australian) workers. Why exactly is that? Because he is prepared to work for less and accept lower working conditions?

Of course, we are meant to feel sympathy for Daniel Gucor who dreams of one day gaining Australian citizenship. Personally, I feel more sympathy for those native-born Australians now directly competing for jobs against immigrant workers from the Third World.