News Service from House Harris

Fed: Cuts to migration numbers could cost jobs: academic

CANBERRA, March 16 AAP - Slashing the skilled migration intake is a short-sighted political move that could cost local jobs and lead to greater skills shortages, an academic says.

In response to rising unemployment, the government will cut the skilled migrant intake by nearly 20,000 to 115,000 this financial year.

Building and manufacturing sectors have been removed from the critical skills list, forcing companies to find bricklayers, plumbers, welders and carpenters locally.

Employers can still sponsor migrant workers privately or through the 457 visa scheme, provided they can prove local labour is not available.

Professor of economics at the University of Canberra Phil Lewis said it was a typical government response to a slowing economy.

"These policies are very popular largely because it's very appealing to say when unemployment goes up why would you bring foreigners in," Prof Lewis told AAP.

"But migrants actually create jobs, they need houses and the retail sector receives a boom because migrants tend to spend more."

Migration should be seen as a long-term policy to encourage economic growth and protect further skills shortages.

Immigration Minister Chris Evans said the skilled migrant program was under constant review and the cuts were made to reflect economic climate.

"The lay-offs in the mining industry and the downturn in the building industry ... mean that we have tradesman now competing for work and it's best to adjust the scheme," he told reporters.

"This is not a xenophobic response, this is not an anti-migration response, it's about fine-tuning the program with the economic needs of the country."

The Master Builders Association says the cuts are warranted because unemployment in the building sector is rising.

"We're projecting at least a loss of 50,000 jobs in this industry over the next 12 months," chief executive Wilhelm Harnisch said.

But the Australian Chamber of Commerce and Industry predicted trade skill shortages.

"You don't want migration policy to move in high peaks and low troughs, because that does create dislocations through the economy," chief executive Peter Anderson said.

The Australian Industry Group, which represents 10,000 employers, agreed.

"When you are reducing immigration itself it is looking at a much longer perspective and we think that shouldn't be done here in Australia," AIG's Victorian director Tim Piper said.

Opposition immigration spokeswoman Sharman Stone said more jobs could have been saved if the government had acted sooner.

"There has been 10,000 jobs lost since October, including areas in mining and manufacturing," Dr Stone said.

"We are not just in the business of jobs but housing and other services and it is going to be difficult enough for Australians without having to compete with new arrivals."

AAP sld/rl/it/jlw