Australia will pump its permanent immigration numbers up by 35,000 to 195,000 in the current financial year.
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Businesses struggle during pandemic
This is a part of efforts to attract long-term migrants who can fill in for businesses battling widespread staff shortages.
The country had shut its borders for two years during the height of the pandemic.
As a result of these strict border rules and an exodus of holiday workers and foreign students, businesses were left struggling to find staff and keep themselves afloat.
Reform desperately needed
Home Affairs Minister Clare O’Neil said that the pandemic presents an opportunity to reform the country’s immigration system.
Based on projections it could attract thousands more nurses and engineers, she said.
Unemployment rate is now at a near 50-year-low of 3.4 per cent but soaring inflation means real wages are down.
Addressing labour shortage
Businesses have been urging the government to raise the limit on annual immigration from 160,000 and to make temporary changes to fill the labour gap.
Australia has been competing with other developed economies to lure more skilled foreign workers with many countries looking to ease immigration rules.
However, lengthened visa processing times has left about a million prospective workers stuck in limbo, worsening the staff shortage crisis.
Plan for the next 9 months
Immigration Minister Andrew Giles acknowledged their suffering due to the uncertainty and said that it reflects a visa system that has been in crisis.
In a bid to speed up visa processing he said that the government will spend A$36.1 million ($25 million) to amp up its staff capacity by 500 people for the next nine months.