High immigration pushing out young Australian jobseekers

From The Australian:

THE Rudd government's alarm about retiring Baby Boomers causing economic growth to fall is unfounded and its policy response -- to bring in tens of thousands of overseas workers a year -- is wrong because of the rapid rise in over-55s staying at work.

According to a new report, a sustained increase in the labour force participation rate among men and women aged over 55 since the mid-1990s, continuing even as jobs are shed during the global economic downturn, should put a large question mark over the immigration program.

If immigration continues at current levels, the group most likely to suffer is young Australian jobseekers trying to enter the workforce, it concludes.

The report -- to be published next week by Monash University's Centre for Population and Urban Research in its People and Place quarterly -- concludes that, even if the net overseas immigration intake were halved from its current 180,000 a year between now and 2018, the labour force would grow by nearly a million workers, about two-thirds of whom would be over 55.

"The Immigration Minister's fear that, without continued, unprecedented high levels of overseas migration, the Australian labour force will soon contract is unfounded," the report concludes. "In the present economic environment of employment decline, sustained high levels of overseas migration are not necessary to ensure adequate labour force growth and such levels are compromising the employment prospects of younger job-seekers."

The report's author, CPUR social researcher Ernest Healy, told The Australian the Rudd government "appears to have been more alarmist than it needed to be in terms of population ageing and labour supply.

"The assumption by the government has been that all these Baby Boomers are going to retire and there will be this crisis of labour growth, but they simply don't seem to be retiring in the numbers the government has been expecting."

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High immigration also adversely affects young Australians by forcing them to compete for entry into the housing market against new arrivals from overseas. Australia already holds the appalling position as the country with the highest house price to income ratio in the developed world, largely due to its massive immigration intake.