2008-5-6 00:10
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MigrationThe level of net overseas migration is important: net inflows of migrants to Australia reduce the rate of population ageing because migrants are younger on average than the resident population. Currently, around 85 per cent of migrants are aged under 40 when they migrate to Australia, compared to around 55 per cent for the resident population (Chart 2.3).[url=http://www.treasury.gov.au/documents/1239/HTML/docshell.asp?URL=03_Part_2.htm#P49_9879][color=#0000ff]2[/color][/url] Of course, migrants also age and add to the older-age resident population over time.
Chart 2.3: Age distribution of Australian population and migrants
[img=480,298]http://www.treasury.gov.au/documents/1239/IMAGES/03_Part_2-48.gif[/img]
Source: Australian Bureau of Statistics data and Treasury projections.
The contribution of net overseas migration to population growth has varied significantly over the past four decades (Chart 2.4). Net migration tends to fall during economic downturns, both because governments respond by adjusting the migrant intake and because permanent and long-term departures increase at these times.
Chart 2.4: Net migration and natural increase in population
[img=492,265]http://www.treasury.gov.au/documents/1239/IMAGES/03_Part_2-49.gif[/img]
Source: Australian Bureau of Statistics Australian Historical Population Statistics Cat. No. 3105.0.65.001 and Treasury projections.
Consistent with the annual average over the past 10 years, future net overseas migration is projected to be constant at 110,000 people per year from the end of the forward estimates period, with the same age-gender profile as at present. In recent years, Government policy to increase the level of skilled migration has resulted in higher net migration and slightly younger migrants, on average, than anticipated earlier. (The IGR1 population projections were based on net overseas migration of 90,000 people per year.)