Impact of border (Australia) reopening on wages, interest rates and unemployment
- After two years sealed shut, the Morrison Government yesterday announced that Australia’s international border will reopen to double-vaccinated tourists from February 21.
- The international border reopening will help the Morrison Government achieve its plan to import at least 200,000 migrant workers into Australia by July.
- The reason why Australia’s labour market has become so tight, despite lacklustre jobs growth, is because labour supply went from growing strongly to stagnating over the pandemic, thanks to the reduction in foreign workers.
- Had the pre-Covid level of immigration continued through the pandemic, there would be roughly 460,000 more workers in the Australian economy
- Higher immigration also means lower interest rates
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