'Big Australia' immigration kills per capita GDP growth – MacroBusiness

By Unconventional Economist in Australian Economy, Immigration
Economist Callam Pickering tweeted the following in response to Thursday’s June quarter national accounts release from the Australian Bureau of Statistics:
As shown clearly above, Australia’s per capita GDP growth trended sharply lower from the early-2000s in concert with the huge lift in Australia’s immigration intake – a fact acknowledged by Anthony Fox:
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Leading immigration shill, Abul Rizvi, was quick to respond with the following propaganda claiming that the decline in GDP has been caused by the growing “demographic burden”:
Abul Rizvi’s “demographic burden” argument is ridiculous given Australia’s employment-to-population ratio, which as per the ABS “shows the number of people that are employed as a percentage of the civilian population aged 15 years and over”, hit a record high in the month of June 2022:
A higher share of Aussies are working than ever before.
Even if we simply divide the number of jobs by the total population, there are currently more Australians in work than ever before (i.e. 53% as at June 2022):
More Australians working than ever before.
So clearly, Abul Rizvi’s “demographic burden” argument is hogwash and does not explain why per capita GDP growth had fallen, given there are more Australians working than ever.
The good news is that the collapse in immigration over the pandemic has helped drive per capita GDP growth higher.
While aggregate real GDP has merely returned to the pre-COVID trend:
Aggregate GDP growth returns to pre-COVID trend.
Real GDP per capita has grown way above the pre-COVID trend on the back of near zero immigration:
Real per capita GDP soars way above pre-COVID trend.
At the same time, closed borders have delivered the best labour market in 50 years, with an unemployment rate of only 3.4% and a record proportion of Australians in jobs:
Best labour market in generations thanks to immigration collapse.
Sadly, the “Labor” Party is hellbent on wrecking these outcomes by foisting on Australians the biggest temporary and permanent migrant influx in the nation’s history, cheered on by the likes of Abul Rizvi.
With friends like them, Australian workers sure don’t need enemies.
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