Foreign Students And Workers Coming Back To Australia
In today’s blog, we will look at the return of foreign students and workers to Australia.
According to the latest data, foreign students and workers are returning to Australia, with visa approvals now back at pre-pandemic levels. Australia’s concern that international students who are frustrated after being locked out for two years, would approach the UK or other countries did not become a reality. The huge amount of visa approvals will be great news for many businesses, especially for companies who have been struggling to fill the job vacancies.
This news is also a sigh of relief for universities as international students contribute a whopping $40 billion yearly to Australia’s economy. But, this may cause problems for some. The arrival of a huge number of foreigners will pressurise the rental market, especially in the metropolitan cities like Sydney and Melbourne where the supply of rental homes is already low. Per a recent report, tenants may soon reach their financial limit.
According to a senior economist at a private investment management company, this inpuring of international workers and students will be very effective to solve the issue of labour shortages, which a lot of businesses have been facing.
She analysed that the sectors of tourism, administration and hospitality, which for the most part were experiencing the loss of employees and customers, would see an immediate improvement. However, the extra job competition will affect Australian workers. She further added that one of the reasons Australia had such strong employment performance in the past two years is because the borders were closed which resulted in Australian businesses and employers filling those gaps left by foreigners through domestic workers.
She stated that the return of international workers mixed with higher inflation would cause the rate of unemployment to rise from its current level which is the lowest it has been in 48 years. The increase in migration could also create new housing demand, which was vulnerable to recent hikes of Reserve Bank cash rate. Australia could expect the following year not to witness a decline in housing construction contrary to previous estimations.
Though arrivals for permanent and long term stay have rebounded to pre-pandemic levels, the rate of international travel to Australia is moving much lower. Per the august data, the number of international arrivals and departures is increasing but is still at half capacity compared to pre-pandemic levels.
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