Population Demographic Decline

Many believe that local, national and global population growth is exponential leading to calls to avoid immigration or cut, need for population control etc., but is it true?  No, according to experts, outside of the UN Population Division, population will peak mid century then decline while ageing further.

What does this mean for the world and nation state economies?  Competition for people whether immigration and temporary workers to fill gaps and support budgets.

From The Lowy Institute:

‘Harnessing demographic destiny

GRANT WYETH

Competition for the world’s best and brightest will intensify as global population growth slows. Is Australia ready?

Managing Population Decline (Image copyright Pexels)

Once confident predictions that the world’s population will reach billion by the end of this century are beginning to be debunked. It is now appears more likely that the global population will hit a ceiling before reaching nine billion by mid-century, and then begin to decline.

This tapering of world population growth is being driven by two key revolutions. One is increasing urbanisation, with more and more people living in cities, which makes children less of an essential resource for families then they would be in rural areas. The other is female education and empowerment, with women deciding – when given the choice – that they desire no more than two children.

Such global trends have significant implications for individual countries, both in national capabilities and geostrategic calculations. This is particularly the case for Australia. Countries that are able to both retain and attract people will find themselves at a distinct advantage.

Currently there is a low-intensity competition for human capital between mostly Western states. These countries have recognised a basic demographic problem; that their birth rates are too low to replace their populations, and without immigration they will end up with elderly societies without the workers to sustain their living standards. Alongside this, attracting highly skilled migrants also boosts productivity.

Yet the population strategies of most of these countries are under threat by parochial narratives that place the political sustainability of their immigration programs at risk.

These narratives are born out of a paradox within the nation-state, where elements within these countries believe that the strategies of the state are undermining the nation. Such sentiment seems uninterested in economic imperatives, or indeed foreign policy concerns about their country’s capabilities in relation to others. Yet these issues are vital to a national interest, and therefore need to be aligned to how a country sees itself….

….. However, it would not be prudent for Australia to rely on this possibility.  By seeking to enhance its own capabilities, Australia can help to escape the influence of external forces. Which means in a world of declining birth rates, Australia’s immigration program should be seen as the country’s principal strategic asset. This indicates that Australia may need to develop something it currently lacks – a prominent positive public narrative around its highly successful immigration story.

A recent speech from Canada’s Conservative Party leader Andrew Scheer offers a good example of the way Australia can develop a positive public narrative around immigration. Scheer highlighted the bravery of migration, the honour Canada feels at being chosen by migrants, and the prosperity that has developed in Canada as a consequence of these migrant flows. It is a speech that no politician in Australia could seemingly deliver (bar its requisite politicking) but is a sentiment that is embraced by all Canadian political parties (with the exception of the Quebec nationalist parties).

As a competitor to Australia for skilled labour, the message Scheer conveyed helps to reinforce support for Canada’s immigration program. And if national competition for people intensifies as global population declines, it will provide Canada with a distinct advantage that Australia currently cannot match.’

For more articles about population growth, immigration and NOM net overseas migration, click through.

 

 

Immigration is not Cause of Unemployment

While most politicians, media and society assume ‘immigration’ drives unemployment, recent Australian research from CEDA contradicts this, as did research presented by left workers’ ‘Solidarity’ in 2012.

Why has it ever been an issue?  Political tactics and strategy, amplified by media and societal word of mouth have felt compelled to promote nativist or white nationalist tropes (from the past) as an appeal to native or incumbent citizens, creating fear, anxiety and even anger (see ‘alt right’), as both an electoral strategy and ideology (e.g. blaming immigrants vs. wage rises).

International Temporary Resident Workers and Professionals (Image copyright Pexels).

From The Guardian:

‘Temporary skilled migration has not undercut Australian jobs or conditions, report finds

Politicians’ ‘revolving door’ response to foreign workers frustrates businesses, industry group CEDA says

Temporary skilled migration has not undercut job opportunities or conditions for Australian workers but the “revolving door” political response to foreign workers has frustrated businesses, an industry report has found.

The report from the Committee for the Economic Development of Australia (CEDA), released on Monday, said that skilled migrants, particularly those on temporary skilled working visas, have been an “overwhelming net positive” for the Australian economy and have not had a negative impact on either the wages or participation rates of Australian-born workers.

However, the report said that despite economic evidence suggesting migration is a positive, “governments have responded to community concern with a seeming revolving door of reviews, reports and frequent policy changes to Australia’s temporary skilled migration program”.’

 

From SBS Australia:

‘Migrants don’t actually threaten Australian workers’ jobs, new analysis reveals

A new report found immigration has not harmed the earnings of local workers.

Temporary skilled migrants have not displaced Australian workers despite fears immigrants threaten the local job market, new analysis by an independent economic organisation has revealed.

Research by the Committee for Economic Development of Australia (CEDA) has also shown immigration has not harmed the earnings of local workers.

The report, “Effects of temporary migration”, showed there are about two million people on temporary visas, including students, working holiday-makers, skilled workers and New Zealand citizens.

The research, released on Monday, showed 70 per cent of temporary skilled migrants reside in NSW and Victoria, which have the lowest rates of unemployment in Australia.’

 

From Solidarity.net

‘Immigration is not to blame for cuts to jobs and wages

9 August 2012

The suggestion that bringing 457 visa workers from overseas is coming at the expense of “local jobs” reinforces the myth that immigration causes unemployment and drives down wages.

In fact evidence from Australia and internationally shows that immigration actually creates jobs. In his book, Immigration and the Australian Economy, William Foster’s surveys over 200 studies on immigration and wages. He found there was, “a marginally favourable effect on the aggregate unemployment rate, even in recession”.

In a 2003 paper economist Hsiao-chuan Chang wrote that, “there is no evidence that immigrants take jobs away from the local Australian over the past twelve years… This supports the conclusion from existing research”.

This is because new migrants generate demand for products and services, such as housing and food. Many of them bring savings to help pay for these things, further boosting the economy and jobs.’

 

Politicians and media commentators could explain more clearly why immigration helps a nation and its economy.  Some of these factors include ageing and declining tax paying work forces in permanent population, with increasing proportion (vs. workforce) of retirees and pensioners requires more tax income to fund related services, and higher temporary immigration means (most of) the same temporary cohort will not also be a drag on state budgets in future.

For more articles and blogs about immigration, white nationalism and economics click through.