2020 has been a recipe for disaster. Its true, it hasn’t been the best possible year especially in an economic sense. The icing on this cake might just be the prospect of a looming recession. This may potentially put a hold on your plans, especially if you’re planning to migrate to Australia. Sounds stressful, right?
It really is not as bad as it seems.
Not being a proponent of toxic positivity here, I have the facts to support my statement. We have seen AND recovered from one of the worst economic recessions to ever hit the markets in 2008. Here’s why the prospect of an oncoming recession is not as bad as it seems (ESPECIALLY if you’re a migrant/potential migrant!)
The past two recessions in Australia provided a number of important policy lessons, not only for the shape of stimulus packages, so the design of policies to support the unemployed.
In recessions, many people lose their jobs. But it is also true that the labour market's capacity to absorb new entrants is impaired. That is, around one-third of the rise in unemployment might be due to a lower level of employment while around two-thirds is due to too few jobs being generated to absorb an ever increasing labour force.
CEDA modelling, summarised in Effects of Temporary Migration, shows that recently arrived migrants have not had a negative impact on the wages or participation rates of Australian-born workers. On the contrary, our results indicate that, in some cases, an increase in migrant concentrations in certain levels of qualification and experience is associated with a positive impact on wages and employment. This finding is consistent with previous research conducted in Australia, which shows no evidence that the entry of migrants had a negative effect on the labour market outcomes of incumbent workers.5 Immigrants work and they consume, thereby creating demand for goods and services in addition to adding to the supply of labour. A 2015 report on the contribution of migrants to the Australian economy estimated that by 2050 the economy would be 40 per cent larger than otherwise due to migration, and GDP per capita 5.9 per cent higher.
Evidence on migration during previous economic downturns in the United Kingdom and Europe suggests that migration falls when unemployment rises but only for a limited period and it tends to pick up before employment recovers.
Australia’s immigration policy has been on a path of change in 2020. Many changes in different visa and PR categories are very important. Experts say it a year of complex changes in immigration policy to introduction of relaxation in new visa streams.
If you’re reading this, you’re probably considering looking into the PR process. We are delighted to offer you a free VISA/PR video or phone consultation with our experienced Immigration Director (MARN: 1464159). Book your appointment now, using this link: https://calendly.com/redbeardtalent/free-visa-consultation?back=1&month=2020-06