Working Age Population and Migration In the economic model that we call capitalism, the rate of growth in the working age population is extremely important because it is the working age population that creates a nation’s wealth by driving consumption. This consumption is essential for business and for property prices. The Organisation for Economic Co-operation and Development (OECD) has just published the 33rd edition of its annual report of the Continuous Reporting System on Migration (known as International Migration Outlook: SOPEMI 2009). The report emphasize the rate of growth in the working age population, the expected medium and long-term impact of migration flows and the integration of immigrants as well as its likely effects on origin countries. The attached chart shows that even if Australia stops all migration, it will still be one of the few developed nations with a working age population forecast to rise by 3.2% by 2020, even without the benefit of migration. Good news for Australia. Migration however, is expected to continue from the developing nations to the OECD countries as people seek a better quality of life for themselves and their families. The developed nations will tend to encourage migration of working age people so that the immigrants will be able to make a contribution to their nation’s wealth. At Newealth we are always looking to innovate and improve our ongoing advice and services wherever possible and if you have any ideas or comments, please feel free to email me at invest@newealth.com.au or to call me on +61 2 9267 2322.
16th-July-2009 | 
