admin-ajax.php

Less immigration = higher interest rates

In one of his excellent blogs Chris Joye once again reminded us of the implications of lowering immigration.

Joye put it this way: I’ve written about this many times before. We’re an immigrant nation, goddamit! Julia Gillard was born in Wales. So this is what RBS has to say, if you don’t believe me:

“After surging in recent years, population growth has slowed sharply from a forty- year high of 2.2% to an annualised rate of 1.4% (at the peak, the population was increasing at an annual rate of almost ½mn, more than the annual increase in the UK population and half the increase in the Euro area population).

This slowdown has mainly reflected a sharp reduction in migrants from a record level (there are fewer people moving here from the UK, China and India, although more Kiwis are arriving on our shores, adding to the ½mn already here), with more Australians now looking for work overseas.

Slower population growth means a strong rise in employment going forward will be less than what the market has become used to, as a 20-25K monthly jobs gain will reduce the unemployment rate by 0.1pp assuming unchanged participation.

Slower population growth should also place pressure on wages as migration has acted as a key safety valve for the labour market during the resources boom (eg, foreign-born workers have accounted for about two-thirds of the employment growth over the past year).”

Source: Chris Joye’s Blogspot



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Less immigration = higher interest rates' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!